Exam 19: Banking Industry: Structure and Competition

Describe Edge Act corporations, international banking facilities, and the structure of foreign banks in the United States.

When and why was the Glass-Steagall Act passed? When and why was it repealed?

The driving force behind the securitization of mortgages and automobile loans has been

Is the large number of banking firms in the United States an indication of a competitive banking industry? Explain why or why not.

In a ________ banking system, commercial banks engage in securities underwriting, but separate subsidiaries conduct the different activities. Also, banking and insurance are not typically undertaken together in this system.

The Federal Reserve Act of 1913 required that

Unlike commercial banks, S&Ls can only be chartered by the federal government.

The presence of so many commercial banks in the United States is most likely the result of

Eurodollars are created when deposits in accounts in the United States are transferred to a bank outside the country and are kept in the form of dollars.

What new forms of banking have been spawned by the advances in information technology of the past two decades? Is it likely that traditional banks will disappear as a result of these innovations? Why?

The entry of Sears, AT&T, and GM into the credit card business is an indication of

The Federal Reserve Act required all ________ banks to become members of the Federal Reserve System, while ________ banks could choose to become members of the system.

A financial innovation that enables banks to avoid the "tax" from reserve requirements by taking any balances above a certain amount in a corporation's checking account at the end of the business day and investing them in overnight securities that pay interest is called a ________.

Deposits in European banks denominated in dollars for the purpose of international transactions are known as ________.