Question 1

Branch banks are those banking offices that are controlled by a single parent bank.

Accepted Answer

A) True 
 B)False

Question 2

An organization that provides loans directly to consumers and businesses or aid individuals in obtaining financing for durable goods is called a (n)

Accepted Answer

A) commercial bank 
B) investment bank 
C) savings and loan 
D) finance company 
A) commercial bank 
B) investment bank 
C) savings and loan 
D) finance company

Question 3

Which of the following statements is most correct?

Accepted Answer

A) The National Banking Act of 1894 has long lost any relationships to modern bank regulation. 
B) The Federal Reserve System was created in large measure to force state chartered banks into conformity with nationally chartered banks. 
C) "Wildcat banking" during the first half of the 1800s referred to risky banking practices by many state banks, such as excessive note issues, lack of adequate bank capital, and insufficient reserves against their notes and deposits. 
D) All the above statements are equally correct. 
A) The National Banking Act of 1894 has long lost any relationships to modern bank regulation. 
B) The Federal Reserve System was created in large measure to force state chartered banks into conformity with nationally chartered banks. 
C) "Wildcat banking" during the first half of the 1800s referred to risky banking practices by many state banks, such as excessive note issues, lack of adequate bank capital, and insufficient reserves against their notes and deposits. 
D) All the above statements are equally correct.

Question 4

In general, the effective rate of interest on a discount loan

Accepted Answer

A) is lower than that on standard loan 
B) is higher than that on a standard loan 
C) is identical to that on a standard loan 
D) none of the above 
A) is lower than that on standard loan 
B) is higher than that on a standard loan 
C) is identical to that on a standard loan 
D) none of the above

Question 5

Statewide branch banking:

Accepted Answer

A) is prohibited in all 50 states 
B) means that branch systems are less likely to fail than independent systems 
C) permits banks to located within a geographically defined distance of the main office 
D) none of the above 
A) is prohibited in all 50 states 
B) means that branch systems are less likely to fail than independent systems 
C) permits banks to located within a geographically defined distance of the main office 
D) none of the above

Question 6

The three basic ways to clear a check through the U.S.banking system includes all of the following EXCEPT:

Accepted Answer

A) through a Federal Reserve Bank 
B) through the U.S.Treasury Bank 
C) through a bank clearinghouse 
D) bank to bank 
A) through a Federal Reserve Bank 
B) through the U.S.Treasury Bank 
C) through a bank clearinghouse 
D) bank to bank

Question 7

The primary type of liability on a bank's balance sheet is deposits.

Accepted Answer

A) True 
 B)False

Question 8

_______________ provide loans directly to consumers and businesses or aid individuals in obtaining financing of durable goods and homes, whereas ______________ originate mortgage loans on homes and other real property by bringing together borrowers and institutional investors.

Accepted Answer

A) thrift institutions, savings and loans 
B) thrift institutions, mortgage banking firms 
C) finance companies, savings and loans 
D) finance companies, mortgage banking firms 
E) none of the above 
A) thrift institutions, savings and loans 
B) thrift institutions, mortgage banking firms 
C) finance companies, savings and loans 
D) finance companies, mortgage banking firms 
E) none of the above

Question 9

Commercial banks are aggressive and often assume large amounts of risk.

Accepted Answer

A) True 
 B)False

Question 10

Commercial banks obtain the bulk of their loanable funds from:

Accepted Answer

A) depositors 
B) the issue of certificates of deposit 
C) sale of bank stock 
D) sale of subordinated debenture bonds 
A) depositors 
B) the issue of certificates of deposit 
C) sale of bank stock 
D) sale of subordinated debenture bonds

Branch banks are those banking offices that are controlled by a single parent bank.

An organization that provides loans directly to consumers and businesses or aid individuals in obtaining financing for durable goods is called a (n)

Which of the following statements is most correct?

In general, the effective rate of interest on a discount loan

Statewide branch banking:

The three basic ways to clear a check through the U.S.banking system includes all of the following EXCEPT:

The primary type of liability on a bank's balance sheet is deposits.

_ provide loans directly to consumers and businesses or aid individuals in obtaining financing of durable goods and homes, whereas originate mortgage loans on homes and other real property by bringing together borrowers and institutional investors.

Commercial banks are aggressive and often assume large amounts of risk.

Commercial banks obtain the bulk of their loanable funds from:

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

Branch banks are those banking offices that are controlled by a single parent bank.

An organization that provides loans directly to consumers and businesses or aid individuals in obtaining financing for durable goods is called a (n)

Which of the following statements is most correct?

In general, the effective rate of interest on a discount loan

Statewide branch banking:

The three basic ways to clear a check through the U.S.banking system includes all of the following EXCEPT:

The primary type of liability on a bank's balance sheet is deposits.

_______________ provide loans directly to consumers and businesses or aid individuals in obtaining financing of durable goods and homes, whereas ______________ originate mortgage loans on homes and other real property by bringing together borrowers and institutional investors.

Commercial banks are aggressive and often assume large amounts of risk.

Commercial banks obtain the bulk of their loanable funds from:

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

_ provide loans directly to consumers and businesses or aid individuals in obtaining financing of durable goods and homes, whereas originate mortgage loans on homes and other real property by bringing together borrowers and institutional investors.