15.4
Which of the following statements about international banking is true?
All of the above statements about international banking are true.
Which of the following statements about the FDIC is true
The FDIC bank examiner looks at banks loan quality, management practices earnings, liquidity, and whether the bank has enough equity to safely support its activities
which of the following statements about the federal deposits insurance corporation is true
all of the above
Banking Act of 1933 gave the federal reserve systems the authority to
ban interest on demand deposits
Adam Hassib works for the Federal Deposit Insurance Corporation. He arrives unannounced at member banks where he conducts audits of managerial and financial practices. Hassib is a:
bank examiner
The federal deposit insurance corporation insures deposits in commercial banks, it was created by the
banking act of 1933
. TD Ameritrade is a company that buys and sells stocks and bonds as well as providing its customers with advice on when to buy and when to sell. TD Ameritrade is an example of a type of nondepository financial institution.
brokerage firm
. Finance companies make loans to people who could not get credit anywhere else. To compensate for taking this extra risk, finance companies
charge higher interest rates than commercial banks do
Finance companies that make loans to promising new businesses with little track record and to firms that are unable to get any more bank credit are_____finance companies
commercial
When Hadley Jones wanted to buy a truck so he could get to and from his job in a nearby community, his credit rating was poor. Jones found that the only place he could get a loan was from a(n) finance company.
consumer
the two types of finance companies are
commercial finance companies and consumer finance companies
the federal deposit insurance company:
is accurately described by all of the above
. A makes short-term loans for which the borrower puts up tangible assets (such as an automobile, inventory, machinery, or property) as security.
. finance company
Dwain Hutcheson is a recent college graduate who found himself in debt as a result of credit card expenditures and in need of dependable transportation. Hutcheson recently purchased a used motorcycle from Speed Cycles. In financing the cycle, Hutcheson found that he would be making payments to Beneficial Corp., a company that deals in poor credit risks and short-term loans. Hutcheson was dealing with a:
. finance company
Which of the following statements about international banking is true?
Foreign banks are subject to fewer regulations than U.S. banks.
the banking act of 1933 gave the federal reserve system the authority to
do all of the above
When bank examiners conclude that a bank has serious financial problems, the FDIC can:
do any of the above
the _______ is an independent quasi-public corporation backed by the full faith and credit of the US government that insures deposits in commercial banks and thrift institutions for up to a ceiling of $250.000 per account
federal deposit investment corporation
Competing against foreign banks can be difficult for U.S. banks because:
foreign banks are subject to fewer regulations than U.S. banks
Federal Deposit Insurance Corporation (FDIC)
insures deposits in commercial banks
One of the major financial burdens for many companies is the need to provide and maintain funds to provide benefits needed by former employees. One of the ways that Delta Airline tried to avoid bankruptcy was by reducing the payout from this fund because returns on investments were not keeping pace with the number of retirees and their benefit demands. This example reflects a problem with
pensions funds
When bank examiners conclude that a bank has serious financial problems, the FDIC can:
require the bank to use new management practices or replace its managers