Exam 4: Financial Intermediaries and the Banking System

The success of financial institutions in the future will depend on their ability to specialize and offer niche products to a narrow base of customers.

The major federal regulator of mutual funds is the

Federal deposit insurance has prevented widespread bank failures and panics.

Most of the largest banks in the world are based in

The Fed banks are supervised by a central governing body called

Social Security is a ____ pension plan.

In the Basel III Accord, 27 countries agreed to increase their banks' capital requirements in an effort to reduce the risk that mega bank failures will cause future financial crises.

The asset of Federal Reserve banks associated with open market operations is

Suppose the Federal Reserve increased deposits by $100 billion, but the reserve requirement on all deposits was 100%.What impact would the change in deposits have on the money supply?

A decrease in reserve requirements should result in an increase in the total level of member bank reserves.

A goldsmith who operated under strict 100 percent reserve requirements

The international banking market, in terms of size, is dominated by banks from

With 100 percent reserve banking, little or no lending is possible.

Most of the financial panics experienced by the United States in the past can be traced to the behavior of financial intermediaries who either took on too much risk or behaved unethically.

The 1978 International Bank Act

Life insurance companies provide protection against death.

The primary responsibility of the Federal Open Market Committee (FOMC) is to

Mutual savings banks are owned by depositors, as are mutual S&Ls.

The Federal Reserve has a major influence on financial markets.

While the Treasury collects most of its receipts through commercial banks, its expenditures (checks) are drawn upon