Chapter 16

The major assets of savings and loans are:

residential mortgages

The most important credit union regulator is the

NCUA

Today, federally chartered savings associations are regulated by

The OCC, FDIC, and Federal Reserve

Historically, thrift institutions are

A European idea copied in the U.S.

Which of the following statements is not true?

Credit unions, most of which are very small, cannot match the extent of services offered by a commercial bank.

The most important source of non-deposit funds to savings institutions is

FHLB advances

Credit unions have higher loan losses than commercial banks.

False

Fed funds are an important source of thrift funds.

False

Industrial banks may arguably be likened to finance companies that issue savings deposits.

True

Acquisition of a greater proportion of which following asset would help a thrift alleviate a high negative GAP position?

adjustable mortgage rates

Compared as an industry to commercial banks, credit unions are

better capitalized

Compared as an industry to commercial banks, savings associations are

better capitalized

Business credit activities of finance companies include all the following except

commercial paper

Most finance company regulation is concerned with

consumer protection

Finance companies need adequate capital to

maintain credit ratings

Compared to thrift institutions, finance companies are generally

more diverse in the types of loans they make, more diverse in the ways they are owned and organized, and more dependent on credit markets for funding

Most thrift institutions were originally organized as:

mutuals

An unintended consequence of the tax incentive to make residential mortgage loans was

over-exposure to interest rate risk

A "mutual" savings association is

owned by its depositors

Commercial banks, savings institutions, and credit unions share all the following characteristics except

seek profit

Consumer receivables on finance company balance sheets include all the following except

student loans

Credit unions share all the following characteristics except

unregulated