An Overview of the Changing Banking and Financial Services Sector: Multiple Choice Questions
Chapter 1
An Overview of the Changing Financial-Services Sector
Multiple Choice Questions
47. In the United States a commercial bank qualifies as a "bank" under federal law if it offers: A) Consumer installment loans, CDs B) Savings deposits, commercial loans C) Checking accounts, commercial loans D) Security investments, inventory loans to business customers E) Commercial deposit accounts, consumer savings plans
48. E. F. Hutton, J.C. Penney, and Sears Roebuck are among leading firms that in the1980’s organized competitors with banks that are known as: A) Nonbank Banks B) Discount Security Brokerage Companies C) Money Market Funds D) Finance Companies E) Investment Banking Units
49. A study of history shows that one of the first services offered by banks was: A) Equipment Leasing B) Currency Exchange C) Security Brokerage and Underwriting D) Sale of Real Estate E) None of the above
50. Banks perform the indispensable task of: A) Creating money without making loan. B) Absorbing the excess liquidity created by other financial institutions C) Intermediating between surplus-spending individuals or institutions and deficit-spending individuals or institutions D) Issuing risky deposits E) None of the above
51. The view that depositors hire banks to analyze the financial condition of prospective borrowers and continually evaluate the condition of outstanding loans is referred to as: A) Delegated monitoring B) The concept of financial intermediation C) The liquidity function in banking D) Market imperfection theory E) The efficiency contribution of banking
52. Which of the following has been an important trend regarding consolidation and geographic expansion in banks? A) Increased bank branching activity B) The formation of more holding companies to purchase smaller banks C) Mergers among some of the largest banks in the industry
An Overview of the Changing Financial-Services Sector
Multiple Choice Questions
47. In the United States a commercial bank qualifies as a "bank" under federal law if it offers: A) Consumer installment loans, CDs B) Savings deposits, commercial loans C) Checking accounts, commercial loans D) Security investments, inventory loans to business customers E) Commercial deposit accounts, consumer savings plans
48. E. F. Hutton, J.C. Penney, and Sears Roebuck are among leading firms that in the1980’s organized competitors with banks that are known as: A) Nonbank Banks B) Discount Security Brokerage Companies C) Money Market Funds D) Finance Companies E) Investment Banking Units
49. A study of history shows that one of the first services offered by banks was: A) Equipment Leasing B) Currency Exchange C) Security Brokerage and Underwriting D) Sale of Real Estate E) None of the above
50. Banks perform the indispensable task of: A) Creating money without making loan. B) Absorbing the excess liquidity created by other financial institutions C) Intermediating between surplus-spending individuals or institutions and deficit-spending individuals or institutions D) Issuing risky deposits E) None of the above
51. The view that depositors hire banks to analyze the financial condition of prospective borrowers and continually evaluate the condition of outstanding loans is referred to as: A) Delegated monitoring B) The concept of financial intermediation C) The liquidity function in banking D) Market imperfection theory E) The efficiency contribution of banking
52. Which of the following has been an important trend regarding consolidation and geographic expansion in banks? A) Increased bank branching activity B) The formation of more holding companies to purchase smaller banks C) Mergers among some of the largest banks in the industry