Question 1

The _______________________ established the U.S.central banking system and increased the effectiveness of commercial banking in general.

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 2

Secondary reserves are vault cash and deposits held at other depository institutions and at Federal Reserve Banks.

Accepted Answer

A) True 
 B)False

Question 3

The Federal Deposit Insurance Corporation Improvement Act of 1991:

Accepted Answer

A) transferred the reserves and functions of the Federal Savings and Loan Insurance Corporation to the FDIC 
B) required that failed banks be handled in such a way as to provide the lowest cost to the FDIC 
C) increased federal deposit insurance from $40,000 to $100,000 for each account 
D) extended federal deposit insurance to S&L depositors 
A) transferred the reserves and functions of the Federal Savings and Loan Insurance Corporation to the FDIC 
B) required that failed banks be handled in such a way as to provide the lowest cost to the FDIC 
C) increased federal deposit insurance from $40,000 to $100,000 for each account 
D) extended federal deposit insurance to S&L depositors

Question 4

The primary types of assets on a bank's balance sheet include cash, securities, and loans.

Accepted Answer

A) True 
 B)False

Question 5

Branch banking is permitted on an interstate basis by all state banks.

Accepted Answer

A) True 
 B)False

Question 6

_______________ accept the savings of individuals and lend pooled savings to individuals primarily in the form of mortgage loans and operate almost entirely in New England , New York, and New Jersey, with most of their assets continuing to be invested in mortgage loans.

Accepted Answer

A) Commercial banks 
B) Thrift institutions 
C) Credit unions 
D) Finance companies 
E) none of the above 
A) Commercial banks 
B) Thrift institutions 
C) Credit unions 
D) Finance companies 
E) none of the above

Question 7

The holding-company device to control two or more commercial banks:

Accepted Answer

A) has diminished in importance in recent years 
B) has increased in importance in recent years 
C) is limited to state chartered banks 
D) is sometimes described as chain banking 
A) has diminished in importance in recent years 
B) has increased in importance in recent years 
C) is limited to state chartered banks 
D) is sometimes described as chain banking

Question 8

__________________ accept savings from individuals and then lend these pooled savings to businesses, governments, and individuals.

Accepted Answer

A) Insurance companies 
B) Commercial finance companies 
C) Depository institutions 
D) Investment banks 
E) none of the above 
A) Insurance companies 
B) Commercial finance companies 
C) Depository institutions 
D) Investment banks 
E) none of the above

Question 9

The main provisions of the Monetary Control Act of 1980 are deregulation and monetary control.

Accepted Answer

A) True 
 B)False

Question 10

The Monetary Control Act prohibited the Federal Reserve from controlling thrift institutions.

Accepted Answer

A) True 
 B)False

Question 11

The U.S.banking system as it exists today is relatively unchanged since just before the Civil War.

Accepted Answer

A) True 
 B)False

Question 12

Primary reserves

Accepted Answer

A) include the cash assets of the firm under the heading "cash and balances due from depository institutions. 
B) are short term securities held by banks that are quickly converted into cash at little cost to the banks. 
C) reflects the bank's ability to meet depositor withdrawals. 
D) reflects the bank's ability to keep the value of a bank's assets greater than its liabilities. 
A) include the cash assets of the firm under the heading "cash and balances due from depository institutions. 
B) are short term securities held by banks that are quickly converted into cash at little cost to the banks. 
C) reflects the bank's ability to meet depositor withdrawals. 
D) reflects the bank's ability to keep the value of a bank's assets greater than its liabilities.

Question 13

The principal assets of all depository institutions are cash, securities, and loans.

Accepted Answer

A) True 
 B)False

Question 14

__________________ accept savings from individuals and then lend these pooled savings to businesses, governments, and individuals.

Accepted Answer

A) Insurance companies 
B) Commercial finance companies 
C) Government institutions 
D) Investment banks 
E) none of the above 
A) Insurance companies 
B) Commercial finance companies 
C) Government institutions 
D) Investment banks 
E) none of the above

Question 15

__________________ collect premiums on insurance policies and employee/employer contributions from pension fund participants and provide retirement benefits and insurance against major financial losses.

Accepted Answer

A) Banks 
B) Contractual savings institutions 
C) Investment banking firms 
D) Brokerage firms 
E) none of the above 
A) Banks 
B) Contractual savings institutions 
C) Investment banking firms 
D) Brokerage firms 
E) none of the above

Question 16

An organization that sells shares in their firms to individuals and others and invests the proceeds in corporate and government securities is called a (n)

Accepted Answer

A) investment company 
B) investment bank 
C) insurance company 
D) brokerage firm 
A) investment company 
B) investment bank 
C) insurance company 
D) brokerage firm

Question 17

The First Bank of the United States:

Accepted Answer

A) is still in operation in Massachusetts 
B) transferred funds from region to region 
C) was unchartered 
D) all the above 
A) is still in operation in Massachusetts 
B) transferred funds from region to region 
C) was unchartered 
D) all the above

Question 18

During the colonial period in the nation's history, banks depended on:

Accepted Answer

A) their own issue of paper money 
B) foreign sources for their loanable funds 
C) deposits of foreign currency such as the Spanish dollar 
D) the investment of their own stockholders 
A) their own issue of paper money 
B) foreign sources for their loanable funds 
C) deposits of foreign currency such as the Spanish dollar 
D) the investment of their own stockholders

Question 19

The primary types of assets on a bank's balance sheet include cash and deposits.

Accepted Answer

A) True 
 B)False

Question 20

The Depository Institutions Deregulation and Monetary Control Act:

Accepted Answer

A) established a system of central banks 
B) has resulted in more competition among depository institutions 
C) increased federal deposit insurance from $40,000 to $80,000 for each account 
D) established minimum capital requirements for banks with federal charters 
A) established a system of central banks 
B) has resulted in more competition among depository institutions 
C) increased federal deposit insurance from $40,000 to $80,000 for each account 
D) established minimum capital requirements for banks with federal charters

The _______________________ established the U.S.central banking system and increased the effectiveness of commercial banking in general.

Secondary reserves are vault cash and deposits held at other depository institutions and at Federal Reserve Banks.

The Federal Deposit Insurance Corporation Improvement Act of 1991:

The primary types of assets on a bank's balance sheet include cash, securities, and loans.

Branch banking is permitted on an interstate basis by all state banks.

_______________ accept the savings of individuals and lend pooled savings to individuals primarily in the form of mortgage loans and operate almost entirely in New England , New York, and New Jersey, with most of their assets continuing to be invested in mortgage loans.

The holding-company device to control two or more commercial banks:

__________________ accept savings from individuals and then lend these pooled savings to businesses, governments, and individuals.

The main provisions of the Monetary Control Act of 1980 are deregulation and monetary control.

The Monetary Control Act prohibited the Federal Reserve from controlling thrift institutions.

The U.S.banking system as it exists today is relatively unchanged since just before the Civil War.

Primary reserves

The principal assets of all depository institutions are cash, securities, and loans.

__________________ accept savings from individuals and then lend these pooled savings to businesses, governments, and individuals.

__________________ collect premiums on insurance policies and employee/employer contributions from pension fund participants and provide retirement benefits and insurance against major financial losses.

An organization that sells shares in their firms to individuals and others and invests the proceeds in corporate and government securities is called a (n)

The First Bank of the United States:

During the colonial period in the nation's history, banks depended on:

The primary types of assets on a bank's balance sheet include cash and deposits.

The Depository Institutions Deregulation and Monetary Control Act:

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

The _______________________ established the U.S.central banking system and increased the effectiveness of commercial banking in general.

Secondary reserves are vault cash and deposits held at other depository institutions and at Federal Reserve Banks.

The Federal Deposit Insurance Corporation Improvement Act of 1991:

The primary types of assets on a bank's balance sheet include cash, securities, and loans.

Branch banking is permitted on an interstate basis by all state banks.

_______________ accept the savings of individuals and lend pooled savings to individuals primarily in the form of mortgage loans and operate almost entirely in New England , New York, and New Jersey, with most of their assets continuing to be invested in mortgage loans.

The holding-company device to control two or more commercial banks:

__________________ accept savings from individuals and then lend these pooled savings to businesses, governments, and individuals.

The main provisions of the Monetary Control Act of 1980 are deregulation and monetary control.

The Monetary Control Act prohibited the Federal Reserve from controlling thrift institutions.

The U.S.banking system as it exists today is relatively unchanged since just before the Civil War.

Primary reserves

The principal assets of all depository institutions are cash, securities, and loans.

__________________ accept savings from individuals and then lend these pooled savings to businesses, governments, and individuals.

__________________ collect premiums on insurance policies and employee/employer contributions from pension fund participants and provide retirement benefits and insurance against major financial losses.

An organization that sells shares in their firms to individuals and others and invests the proceeds in corporate and government securities is called a (n)

The First Bank of the United States:

During the colonial period in the nation's history, banks depended on:

The primary types of assets on a bank's balance sheet include cash and deposits.

The Depository Institutions Deregulation and Monetary Control Act:

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