UNIT 2: BANKING SERVICES CAREERS

Select all the tasks associated with maintaining a checking account.

1, 3, 4, 5

Basel I, the first Basel Norm banking accord, dealt mainly with _____. (Select all that apply.)

1. accounting for risks in bank portfolios 2. assessing banks' assets

What are some services banks offer young investors to start saving? (Select all that apply.)

1. automatic transfers 3. set up retirement accounts 4. direct deposit

Bank A is being measured to evaluate how successfully it is running its operations. Analysts will mainly look at _____. (Select all that apply.)

1. growth in loans and type of loans in the loan portfolio 2. receivables aging 4. deposit turnover and growth

In order to open a checking account, you need to _____.

2, 4, 7, and i think theres one missing but idk which

What are some key factors that affect the return on investment for securities? (Select all that apply.)

2. global economy 3. inflation 4. company performance

Members of the G20 include _____. (Select all that apply.)

2. russia 4. mexico

Facts about the Basel Norms include _____. (Select all that apply.)

2. the norms guarantee financial solvency for the banks in the global financial system 3. banking systems adopt the standards to create uniformity in the financial world

If the CPI increased from 80 to 84, the rate of inflation is:

5%

leverage ratio

Bank A has a certain amount of deb, measured in this way

net stable funding formula

Bank A is assessing their liquidity as it relates to their long-term funding obligations

receivables turnover

Bank A is paid relatively quickly by its borrowers this quarter

liquidity requirements

Bank A must keep a certain amount of money in reserve—unused—based on what it lent out to their customers

What distinguishes a bank from an outside financial services company?

Banks offer both banking and financial services products.

The index used to calculate most cost of living adjustments is the _____.

CPI

Jordan already has a checking account. She wants to deposit a check that she received from her aunt for her birthday. What should Jordan do?

Sign the back of the check, complete a deposit slip, and bring it to the teller.

Explain how the U.S. mortgage crisis/housing collapse was able to affect non-US banks.

The U.S. mortgage crisis and housing collapse reverberated globally as non-U.S. banks, interconnected through international markets, held portfolios of substandard mortgage loans. The resulting credit crunch limited their ability to provide loans, contributing to widespread financial instability beyond U.S. borders.

What is one of the main confusing aspects when trying to hire a certified financial planner?

The fee structure is different for each planner.

A certified financial planner must have three years of experience in addition to passing an exam given by the CFP Board of Standards.

True

Breton Woods Standards were found to be inadequate mainly because _____.

a bank had risky exposure to foreign currency that exceeded the value of the bank

What should appear in this section of a check register? (deposit amount)

amount deposited

What should be written in this section of a check? (__ dollars)

amount in words

What information should be entered in this section of the checkbook register? (transaction amount)

amount withdrawn

To open a checking account, the first thing you do is ____.

complete forms to provide information

How often should you review your financial plan with a certified financial planner?

every year

A bank's run-off rate is the percentage of accounts receivable that are delinquent in a 30-day period.

false

The Basel Norms are mainly for international banking, and not followed by the United States, which has its own banking regulations.

false

The closer a bank's liquidity coverage ratio is to 50 percent, the more solvent the bank is said to be.

false

When opening a checking account, the bank does not run an account verification if you provide a state-issued ID.

false

The Breton Woods Standards were mainly designed to regulate _____.

foreign exchange

Unexpected inflation will:

hurt lenders

What is a key aspect of the global economy that works against you when trying to save and invest?

inflation

A bank's solvency is most clearly realized in its _____.

leverage ratio

A bank's loans are increasing at a rapid rate. The least positive reason for this increase is thought to be _____.

lower loan interest than competitors

What is written in this section of a check? (pay to the order of)

payee

Analysts are looking at a bank's liquidity ratio. The key information they will be most interested in will most likely be _____.

proportion of high-quality liquid assets

If the rate of inflation is higher than the interest rate on your savings account, what effect does this have?

purchasing power decreases

When writing a check, you complete all of these steps except for _____.

signing the back of the check

Name four factors that distinguish a person with a Certified Financial Planner designation versus a person without the designation.

specialized education, experience, adherence to a code of ethics, and commitment to continuing education.

What is one of the main reasons banks should focus on customer service, which is a contributing factor to bank profit?

to maintain long-term deposits

Europe was struck with the mortgage banking collapse at the same time the United States was affected: 2007 to 2009.

true

When is the best time to start planning for your financial future?

when you get your first job out of college

What is a key factor in determining the proper asset allocation for your portfolio?

your risk tolerance