M&B CHAP 11

________ are the only depository institutions that are tax-exempt.

Credit unions

Because of the abuses by state banks and the clear need for a central bank to help the federal government raise funds during the War of 1812, Congress created the

Second Bank of the United States in 1816.

Mutual savings banks are primarily regulated by

the states in which they are located.

An essential characteristic of credit unions is that

they are organized for individuals with a common bond.

In a ________ banking system, commercial banks provide a full range of banking, securities, and insurance services, all within a single legal entity.

universal

Prior to 2008, bank managers looked on reserve requirements

as a tax on deposits.

A financial innovation that developed as a result of banks avoidance of bank branching restrictions was

bank holding companies.

One factor contributing to the decline in cost advantages that banks once had is the

decline in the importance of checkable deposits from over 60 percent of banks' liabilities to 2 percent today

Mutual savings banks are owned by

depositors

Under the Gramm-Leach-Bliley Act states retain regulatory authority over

insurance activities.

To eliminate the abuses of the state-chartered banks, the ________ created a new banking system of federally chartered banks, supervised by the ________.

National Bank Act of 1863; Office of the Comptroller of the Currency

The large number of banks in the United States is an indication of

lack of competition within the banking industry.

Lack of competition in the United States banking industry can be attributed to

nineteenth-century populist sentiment.

Experts predict that the future structure of the U.S. banking industry will have

several thousand banks.

Bank holding companies that rival money center banks in size, but are not located in money center cities are

superregional banks.