Money Bank Quizzes

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  • Published : May 2, 2013
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* Question 1
0 out of 1 points
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| The Argentine banking crisis of 2001 resulted from Argentina's banks being required to Answer | | | | | Selected Answer:|    pay back the value of failed loans.| Correct Answer:|    purchase large amounts of government debt.|

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* Question 2
1 out of 1 points
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| Newly-issued high-yield bonds rated below investment grade by the bond-rating agencies are frequently referred to asAnswer | | | | | Selected Answer:|    junk bonds.|
Correct Answer:|    junk bonds.|
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* Question 3
1 out of 1 points
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| Rising interest-rate riskAnswer | | | |
| Selected Answer:|    increased the demand for financial innovation.| Correct Answer:|    increased the demand for financial innovation.|
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* Question 4
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| The most significant change in the economic environment that changed the demand for financial products in recent years has beenAnswer | | | | | Selected Answer:|    the dramatic increase in the volatility of interest rates.| Correct Answer:|    the dramatic increase in the volatility of interest rates.|

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* Question 5
1 out of 1 points
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| Eurodollars areAnswer | | | |
| Selected Answer:|    dollar-dominated deposits held in banks outside the United States.| Correct Answer:|    dollar-dominated deposits held in banks outside the United States.|
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* Question 6
1 out of 1 points
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| Moral hazard is an important concern of insurance arrangements because the existence of insuranceAnswer | | | | | Selected Answer:|    provides increased incentives for risk taking.| Correct Answer:|    provides increased incentives for risk taking.|

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* Question 7
1 out of 1 points
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| The process of transforming otherwise illiquid financial assets into marketable capital market instruments is know asAnswer | | | | | Selected Answer:|    securitization.|
Correct Answer:|    securitization.|
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* Question 8
1 out of 1 points
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| Probably the most significant factor explaining the drastic drop in the number of bank failures since the Great Depression has beenAnswer | | | | | Selected Answer:|    the creation of the FDIC.|

Correct Answer:|    the creation of the FDIC.|
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* Question 9
1 out of 1 points
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| The ability to use one resource to provide different products and services isAnswer | | | | | Selected Answer:|    economies of scope.|
Correct Answer:|    economies of scope.|
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* Question 10
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| If the FDIC decides that a bank is too big to fail, it will use the ________ method, effectively ensuring that ________ depositors will suffer losses.Answer | | | | | Selected Answer:|    purchase and assumption; no|

Correct Answer:|    purchase and assumption; no|
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* Question 11
1 out of 1 points
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| A problem with the too-big-to-fail policy is that it ________ the incentives for ________ by big banks.Answer | | | | | Selected Answer:|    increases; moral hazard|
Correct Answer:|    increases; moral hazard|
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* Question 12
1 out of 1 points
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| The most important source of the changes in supply conditions that stimulate financial innovation has been theAnswer | | | | | Selected Answer:|    improvement in computer and telecommunications technology.| Correct Answer:|    improvement in computer and telecommunications technology.|

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* Question 13
1 out of 1 points
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| Banks will be examined at least once a year and given a CAMELS rating by examiners. The L stands for ________.Answer | | | | | Selected Answer:|    liquidity|
Correct Answer:|    liquidity|
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* Question 14
1 out of 1 points
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