 |
| 1 | |
________________ provide(s) the main revenue-generating asset category for banks. |
| | A) | Loans |
| | B) | Consumer deposits |
| | C) | Business deposits |
| | D) | Investment securities |
| | E) | Real estate |
|
|
|
| 2 | |
When a bank has loans on which the borrowers are past due, we call such loans: |
| | A) | prime loans |
| | B) | non transactions items |
| | C) | off balance sheet items |
| | D) | noncurrent loans |
| | E) | diseconomies |
|
|
|
| 3 | |
Of the following, which can issue a charter to engage in commercial banking in the U.S.? |
| | A) | FDIC |
| | B) | Federal Reserve |
| | C) | Comptroller of the Currency |
| | D) | NCUA |
| | E) | all of the above |
|
|
|
| 4 | |
In 2006 and 2007, there was a notable increase in delinquencies and bank foreclosures on: |
| | A) | auto loans |
| | B) | mortgage loans |
| | C) | shopping center loans |
| | D) | prime loans |
| | E) | loans to finance inventories. |
|
|
|
| 5 | |
The _________________ is a bank account having check-writing privileges, which also pays interest. |
| | A) | Federal funds account |
| | B) | Commercial paper account |
| | C) | NOW account |
| | D) | PO account |
| | E) | Community account |
|
|
|
| 6 | |
Commercial banks can have dealings with other commercial banks—for loan participations, services, and the like. Such dealings are handled through ___________________ relationships. |
| | A) | Federal Reserve |
| | B) | correspondent banking |
| | C) | FDIC |
| | D) | spread |
| | E) | super-regional bank |
|
|
|
| 7 | |
The ______________ provides deposit insurance to commercial banks. |
| | A) | Federal Reserve |
| | B) | Office of Comptroller of the Currency |
| | C) | OTS |
| | D) | FDIC |
| | E) | U.S. Treasury |
|
|
|
| 8 | |
A/an _______________ is a corporation that owns other, subsidiary corporations. In commercial banking, such corporations are under regulation of the Federal Reserve System. |
| | A) | correspondent bank |
| | B) | holding company |
| | C) | money center bank |
| | D) | community bank |
| | E) | Federal Reserve Bank |
|
|
|
| 9 | |
The U.S. banking system is often referred to as a ____________________ banking system, because there are two governmental "levels" providing bank charters. |
| | A) | tiered |
| | B) | federal |
| | C) | community |
| | D) | regional |
| | E) | dual |
|
|
|
| 10 | |
A/an __________________is a smaller bank, specializing in consumer-oriented banking services. |
| | A) | money center bank |
| | B) | central bank |
| | C) | community bank |
| | D) | FDIC |
| | E) | national bank |
|
|
|
| 11 | |
When a bank displays lower its average production costs by offering wider variety of services, it demonstrates the phenomenon called: |
| | A) | economies of scope |
| | B) | dual banking |
| | C) | community banking |
| | D) | bank holding company banking |
| | E) | economies of scale |
|
|
|
| 12 | |
The difference between a commercial bank's average rate earned on loans and its average rate paid on deposits is called the: |
| | A) | charge off rate |
| | B) | net operating income |
| | C) | return on assets |
| | D) | money market rate |
| | E) | interest rate spread |
|
|
|
| 13 | |
Looking at a commercial bank's balance sheet, we observe the customer deposits as a/an _______________ item. |
| | A) | equity |
| | B) | liability |
| | C) | financial asset |
| | D) | non-financial asset |
| | E) | cash asset |
|
|
|
| 14 | |
_________________________ represent the largest group of depository institutions, measured by asset size. |
| | A) | Finance companies |
| | B) | Credit unions |
| | C) | Commercial banks |
| | D) | Savings institutions |
| | E) | Check-cashing stores |
|
|
|
| 15 | |
Transactions accounts include: |
| | A) | NOW accounts |
| | B) | Demand deposit accounts |
| | C) | Negotiable CDs |
| | D) | All of the above |
| | E) | (a) and (b) |
|
|
|
| 16 | |
As of 2007, the U.S. had somewhat more than ___________ commercial banks, which represented a substantial ___________ since 1984. |
| | A) | 14,000; increase |
| | B) | 25,000; increase |
| | C) | 600; decrease |
| | D) | 7,000; decrease |
| | E) | 600; increase |
|
|
|
| 17 | |
Those banks known as ___________________ banks rely heavily on non-deposit funding, and are generally located in major financial centers. |
| | A) | money center |
| | B) | regional |
| | C) | federal funds |
| | D) | community |
| | E) | holding company |
|
|
|
| 18 | |
Which of the following would not be among the advantages of international expansion by a bank? |
| | A) | better diversification of risk |
| | B) | lowering of the regulatory burden |
| | C) | improved economies of scale |
| | D) | higher monitoring and information collection costs |
| | E) | broader and possibly cheaper access to funds |
|
|
.