Question 1

Mortgage banking firms provide loans directly to consumers and businesses or aid individuals in obtaining financing of durable goods and homes.

Accepted Answer

A) True 
 B)False

Question 2

An investment bank accepts deposits, makes loans, and issues checking accounts.

Accepted Answer

A) True 
 B)False

Question 3

Capital notes:

Accepted Answer

A) are subject to reserve requirements 
B) are assets of the banks that issue them 
C) are always subordinated to the claims of bank depositors 
D) reflect short-term borrowing on the part of the bank 
A) are subject to reserve requirements 
B) are assets of the banks that issue them 
C) are always subordinated to the claims of bank depositors 
D) reflect short-term borrowing on the part of the bank

Question 4

The Federal Savings and Loan Insurance Corporation:

Accepted Answer

A) has ceased operations and has been replaced by the FDIC in its insuring operations 
B) protects credit unions 
C) insures money market accounts 
D) is responsible for insuring deposits at savings banks 
A) has ceased operations and has been replaced by the FDIC in its insuring operations 
B) protects credit unions 
C) insures money market accounts 
D) is responsible for insuring deposits at savings banks

Question 5

The Bank Holding Company Act of 1956:

Accepted Answer

A) established uniform standards to evaluate the legality of bank holding company acquisitions 
B) allowed bank holding companies to acquire credit card companies 
C) defined a bank holding company as one which owns 25% or more of the voting shares of each of two or more banks 
D) included all the above 
A) established uniform standards to evaluate the legality of bank holding company acquisitions 
B) allowed bank holding companies to acquire credit card companies 
C) defined a bank holding company as one which owns 25% or more of the voting shares of each of two or more banks 
D) included all the above

Question 6

If $5,000 is borrowed on a discount basis and the rate is 10 percent, the annual percentage interest rate on this loan would be:

Accepted Answer

A) 10% 
B) 10.1% 
C) 11% 
D) 11.1% 
E) none of the above 
A) 10% 
B) 10.1% 
C) 11% 
D) 11.1% 
E) none of the above

Question 7

Credit unions are cooperative nonprofit organizations that exist primarily to provide member depositors with consumer credit.

Accepted Answer

A) True 
 B)False

Question 8

Credit unions are:

Accepted Answer

A) for profit organizations 
B) made up of individuals who possess common bonds of association 
C) institutions that derive funds from investment activities 
D) all the above 
A) for profit organizations 
B) made up of individuals who possess common bonds of association 
C) institutions that derive funds from investment activities 
D) all the above

Question 9

The process of ______________ which is the process of pooling and packaging mortgage loans into debt securities resulted in the creation of ______________.

Accepted Answer

A) securitization, pooled asset loans 
B) portfolio composition, mortgage backed securities 
C) issuing mortgage backed securities, securitization 
D) specialization, mortgage backed securities 
E) none of the above 
A) securitization, pooled asset loans 
B) portfolio composition, mortgage backed securities 
C) issuing mortgage backed securities, securitization 
D) specialization, mortgage backed securities 
E) none of the above

Question 10

The Bretton Woods Agreement was an agreement between major central banks to adopt capital adequacy requirements for internationally involved banks.

Accepted Answer

A) True 
 B)False

Question 11

Pension funds receive contributions from employees and/or their employers and invest the proceeds on behalf of the employees for use during their retirement years.

Accepted Answer

A) True 
 B)False

Question 12

The _______________________ was designed to reduce or eliminate interest rate limitations and increase access to various sources of funds available to banks and thrifts and expand the Federal Reserve's control over thrifts and non-member banks.

Accepted Answer

A) Glass Steagall Act 
B) Gramm-Leach-Bliley Act 
C) Garn-Saint Germain Act 
D) Depository Institutions Deregulation and Monetary Control Act 
A) Glass Steagall Act 
B) Gramm-Leach-Bliley Act 
C) Garn-Saint Germain Act 
D) Depository Institutions Deregulation and Monetary Control Act

Question 13

Insurance companies sell shares in their firms to individuals and invest the pooled proceeds in corporate and government securities.

Accepted Answer

A) True 
 B)False

Question 14

Savings and loans were first known as building societies.

Accepted Answer

A) True 
 B)False

Question 15

__________________ is the process by which individual savings are accumulated in depository institutions and, in turn, lent or invested.

Accepted Answer

A) Investing 
B) Financial intermediation 
C) The multiplier effect 
D) Lending 
E) none of the above 
A) Investing 
B) Financial intermediation 
C) The multiplier effect 
D) Lending 
E) none of the above

Question 16

Part of the reason that the Banking Act of 1933 was passed was in response to the large numbers of bank failures.

Accepted Answer

A) True 
 B)False

Question 17

The _______________________ made it possible for banks to receive federal charters and provided a basis for national banking laws.

Accepted Answer

A) Glass Steagall Act 
B) National Banking Act 
C) Garn-Saint Germain Act 
D) Federal Reserve Act 
A) Glass Steagall Act 
B) National Banking Act 
C) Garn-Saint Germain Act 
D) Federal Reserve Act

Question 18

__________________ accept and invest individual savings and also facilitate the sale and transfer of securities between investors.

Accepted Answer

A) Securities firms 
B) Pension funds 
C) Asset management companies 
D) none of the above 
A) Securities firms 
B) Pension funds 
C) Asset management companies 
D) none of the above

Question 19

The total capital ratio (TCR) can be computed as total capital divided by total assets times 100.

Accepted Answer

A) True 
 B)False

Question 20

The primary purpose of this Act was to aid the savings and loan industry

Accepted Answer

A) Garn-St.Germain Depository Institutions Act 
B) Glass-Steagall Act 
C) Hunt Commission legislation 
D) Depository Institutions Deregulation and Monetary Control Act 
A) Garn-St.Germain Depository Institutions Act 
B) Glass-Steagall Act 
C) Hunt Commission legislation 
D) Depository Institutions Deregulation and Monetary Control Act

Mortgage banking firms provide loans directly to consumers and businesses or aid individuals in obtaining financing of durable goods and homes.

An investment bank accepts deposits, makes loans, and issues checking accounts.

Capital notes:

The Federal Savings and Loan Insurance Corporation:

The Bank Holding Company Act of 1956:

If $5,000 is borrowed on a discount basis and the rate is 10 percent, the annual percentage interest rate on this loan would be:

Credit unions are cooperative nonprofit organizations that exist primarily to provide member depositors with consumer credit.

Credit unions are:

The process of which is the process of pooling and packaging mortgage loans into debt securities resulted in the creation of .

The Bretton Woods Agreement was an agreement between major central banks to adopt capital adequacy requirements for internationally involved banks.

Pension funds receive contributions from employees and/or their employers and invest the proceeds on behalf of the employees for use during their retirement years.

The _______________________ was designed to reduce or eliminate interest rate limitations and increase access to various sources of funds available to banks and thrifts and expand the Federal Reserve's control over thrifts and non-member banks.

Insurance companies sell shares in their firms to individuals and invest the pooled proceeds in corporate and government securities.

Savings and loans were first known as building societies.

__________________ is the process by which individual savings are accumulated in depository institutions and, in turn, lent or invested.

Part of the reason that the Banking Act of 1933 was passed was in response to the large numbers of bank failures.

The _______________________ made it possible for banks to receive federal charters and provided a basis for national banking laws.

__________________ accept and invest individual savings and also facilitate the sale and transfer of securities between investors.

The total capital ratio (TCR) can be computed as total capital divided by total assets times 100.

The primary purpose of this Act was to aid the savings and loan industry

The Financial Environment

Money and the Monetary System

Federal Reserve System

Policy Makers and the Money Supply

International Finance and Trade

Savings and Investment Process

Interest Rates

Time Value of Money

Bonds and Stocks: Characteristics and Valuation

Securities Markets

Financial Return and Risk Concepts

Business Organization and Financial Data

Financial Analysis and Long-Term Financial Planning

Managing Working Capital

Short-Term Business Financing

Capital Budgeting Analysis

Capital Structure and the Cost of Capital

Filters

Exam 3: Banks and Other Financial Institutions

Mortgage banking firms provide loans directly to consumers and businesses or aid individuals in obtaining financing of durable goods and homes.

An investment bank accepts deposits, makes loans, and issues checking accounts.

Capital notes:

The Federal Savings and Loan Insurance Corporation:

The Bank Holding Company Act of 1956:

If $5,000 is borrowed on a discount basis and the rate is 10 percent, the annual percentage interest rate on this loan would be:

Credit unions are cooperative nonprofit organizations that exist primarily to provide member depositors with consumer credit.

Credit unions are:

The process of ______________ which is the process of pooling and packaging mortgage loans into debt securities resulted in the creation of ______________.

The Bretton Woods Agreement was an agreement between major central banks to adopt capital adequacy requirements for internationally involved banks.

Pension funds receive contributions from employees and/or their employers and invest the proceeds on behalf of the employees for use during their retirement years.

The _______________________ was designed to reduce or eliminate interest rate limitations and increase access to various sources of funds available to banks and thrifts and expand the Federal Reserve's control over thrifts and non-member banks.

Insurance companies sell shares in their firms to individuals and invest the pooled proceeds in corporate and government securities.

Savings and loans were first known as building societies.

__________________ is the process by which individual savings are accumulated in depository institutions and, in turn, lent or invested.

Part of the reason that the Banking Act of 1933 was passed was in response to the large numbers of bank failures.

The _______________________ made it possible for banks to receive federal charters and provided a basis for national banking laws.

__________________ accept and invest individual savings and also facilitate the sale and transfer of securities between investors.

The total capital ratio (TCR) can be computed as total capital divided by total assets times 100.

The primary purpose of this Act was to aid the savings and loan industry

The Financial Environment

Money and the Monetary System

Federal Reserve System

Policy Makers and the Money Supply

International Finance and Trade

Savings and Investment Process

Interest Rates

Time Value of Money

Bonds and Stocks: Characteristics and Valuation

Securities Markets

Financial Return and Risk Concepts

Business Organization and Financial Data

Financial Analysis and Long-Term Financial Planning

Managing Working Capital

Short-Term Business Financing

Capital Budgeting Analysis

Capital Structure and the Cost of Capital

Filters

The process of which is the process of pooling and packaging mortgage loans into debt securities resulted in the creation of .