Finance Ch 3

अब Quizwiz के साथ अपने होमवर्क और परीक्षाओं को एस करें!

Checks may be cleared by: a. the Federal Reserve b. banks in the banking system c. both a and b d. neither a nor b

A and B

Financial institutions include: a. banks b. pension funds c. insurance companies d. all of the above

All of the above

The National Banking Act of 1864: a. established minimum capital requirements for federally chartered banks b. regulated loans with respect to safety and liquidity c. established minimum reserve requirements d. all of the above

All of the above

The notes of the Bank of North America a. served as a circulating medium of exchange b. loaned liberally to the government c. were redeemed in metallic coins upon demand d. all the above e. none of the above

All of the above

Types of financial institutions include all of the following EXCEPT: a. commercial banks b. pension funds c. insurance companies d. brokerage firms e. all of the above are types of financial institutions

All of the above

Types of financial institutions include all of the following EXCEPT: a. commercial banks b. pension funds c. insurance companies d. all of the above are types of financial institutions

All of the above

The First Bank of the United States ceased operations because: a. the need to provide financing for the Civil War was not supported by Congress b. of the opposition of state banking interests c. its charter had expired and there was no provision for its renewal d. both b and c

B and C

An investment bank accepts deposits, makes loans, and issues checking accounts.(T/F)

False

Insurance companies sell shares in their firms to individuals and invest the pooled proceeds in corporate and government securities. (T/F)

False

Investment banking firms sell shares in their firms to individuals and invest the pooled proceeds in corporate and government securities.(T/F)

False

The primary types of assets on a bank's balance sheet include cash and deposits. (T/F)

False

The prime rate of interest has been relatively stable during the past twenty-five years. (T/F)

False

.Investment banks accept deposits and makes loans to individuals and businesses. (T/F)

Fasle

.Savings and loan associations are cooperative nonprofit organizations that exist primarily to provide member depositors with consumer credit. (T/F)

Fasle

.The Monetary Control Act prohibited the Federal Reserve from controlling thrift institutions. (T/F)

Fasle

Commercial banks provide loans directly to consumers and businesses or aid individuals in obtaining financing of durable goods and homes. (T/F)

Fasle

Credit risk is the likelihood that a bank will be unable to meet depositor withdrawal demands and other liabilities when due.(T/F)

Fasle

Insurance companies receive contributions from employees and/or their employers and invest the proceeds on behalf of the employees for use during their retirement years. (T/F)

Fasle

Investment banking firms assist individuals to purchase new or existing securities issues or to sell previously purchased securities.(T/F)

Fasle

Mortgage banking firms provide loans directly to consumers and businesses or aid individuals in obtaining financing of durable goods and homes. (T/F)

Fasle

Secondary reserves are vault cash and deposits held at other depository institutions and at Federal Reserve Banks.(T/F)

Fasle

The U.S. banking system as it exists today is relatively unchanged since just before the Civil War. (T/F)

Fasle

The bank holding company may not engage in direct banking activities.(T/F)

Fasle

Today, reserve requirements imposed by the Federal Reserve apply only to member banks.(T/F)

Fasle

_____________ 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. a. Commercial banks b. Thrift institutions c. Credit unions d. Finance companies e. none of the above

None of the above

______________ are non-commercial bank depository institutions that include savings banks and credit unions, which accumulate individual savings and lend primarily to other individuals. a. Banks b. Securities firms c. Pension funds d. Finance companies e. none of the above

None of the above

______________ 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. a. thrift institutions, savings and loans b. thrift institutions, mortgage banking firms c. property brokers, savings and loans d. property brokers, mortgage banking firms e. none of the above

None of the above

_______________ sell or market new securities issued by businesses to individual and institutional investors, whereas ______________ firms assist individuals who want to purchase new or existing securities issues or who want to sell previously purchased securities. a. Brokerage firms, investment banks b. Investment banks, savings banks c. savings banks, investment banks d. Brokerage firms, savings banks e. none of the above

None of the above

_________________ accept savings from individuals and then lend these pooled savings to businesses, governments, and individuals. a. Insurance companies b. Commercial finance companies c. Government institutions d. Investment banks e. none of the above

None of the above

__________________ are the two important forms of contractual savings organizations. a. Insurance companies and brokerage firms b. banks and insurance companies c. Investment banks and pension funds d. Pension funds and brokerage firms e. none of the above

None of the above

__________________ collect premiums on insurance policies and employee/employer contributions from pension fund participants and provide retirement benefits and insurance against major financial losses. a. Banks b. Personal service firms c. Investment banking firms d. Brokerage firms e. none of the above

None of the above

Interest rate risk results from possible price fluctuations in fixed-rate debt instruments associated with changes in market interest rates. (T/F)

True

International banking exists when banks operate in more than one country.(T/F)

True

Investment banking firms sell or market new securities issued by businesses to individual and institutional investors.(T/F)

True

Investment companies sell shares in their firms to individuals and invest the pooled proceeds in corporate and government securities.(T/F)

True

Major types of financial institutions in the U.S. include commercial banks, mutual funds, insurance companies, and pension funds. (T/F)

True

Mutual funds are open-end investment companies that can issue an unlimited number of shares to its investors and use the pooled proceeds to purchase corporate and government securities.(T/F)

True

Part of the reason that the Banking Act of 1933 was passed was in response to the large numbers of bank failures(T/F)

True

Pension funds receive contributions from employees and/or their employers and invest the proceeds on behalf of the employees for use during their retirement years. (T/F)

True

Pension funds receive contributions from employees and/or their employers and invest the proceeds on behalf of the employees.(T/F)

True

The Glass-Steagall Act was repealed with the passage of the Gramm-Leach-Bliley Act of 1999. (T/F)

True

The National Banking Act of 1864 made it possible for banks to receive federal charters.(T/F)

True

The effective rate of interest is generally lower on a standard loan than an otherwise equivalent discount loan.(T/F)

True

The largest type of liabilities on a bank's balance sheet is deposits.(T/F)

True

The main provisions of the Monetary Control Act of 1980 are deregulation and monetary control(T/F)

True

The principal assets of depository institutions are cash, securities, loans, and fixed assets.(T/F)

True

Credit unions are cooperative nonprofit organizations that exist primarily to provide member depositors with consumer credit.(T/F)

True

Depository institutions include commercial banks, savings and loans, savings banks, and credit unions.(T/F)

True

.The Basel Accord was an agreement between major central banks to adopt capital adequacy requirements for internationally involved banks.(T/F)

True

.The Federal Reserve Act of 1913 created a system of central banks in the United States. (T/F)

True

.The largest type of assets on a bank's balance is loans. (T/F)

True

Bank solvency reflects the ability to keep the value of a bank's assets greater than its liabilities(T/F)

True

Branch banks are those banking offices that are controlled by a single parent bank(T/F)

True

Commercial banks accept deposits and makes loans to individuals and businesses(T/F)

True

Credit risk is the chance of nonpayment or delayed payment of interest or principal. (T/F)

True

Credit unions are cooperative nonprofit organizations that exist primarily to provide member depositors with consumer credit(T/F)

True


संबंधित स्टडी सेट्स

Ginder Marketing test 3 CH 9,10,11

View Set

Chapter 4 (Highlights)- Working with Sellers

View Set

MSK/Rheumatology Practice Q's (Exam 2)

View Set

Prejudice vocab, practice, and quiz

View Set