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- Which of the following is not a channel for delivering banking services?
- Mobile banking.
- Online banking.
- Automated Teller Machines.
- Branch banking.
- Retail banking.
- Answer: e
True/False
- Mortgage defaults were greatest in geographic markets that had experienced the greatest run-up in real estate prices.
- Smaller banks tended to have more subprime mortgage defaults than larger banks.
- To help keep people in their homes, the SEC promoted loan modifications for troubled home-loan borrowers.
- In 2008, the U.S. Treasury committed over $50 trillion dollars in financial support for financial institutions.
- Community banks tend to operate in a limited geographic region.
- Super-regional banks typically have limited global operations.
- During the past 20 years, the number of distinct U.S. banking organizations has increased.
- An independent bank operates a single organization that accepts deposits and makes loans.
- Thrifts are supervised by the Office of Thrift Supervision.
- It is more difficult for multibank holding companies to realize economies of scale if they allow subsidiary banks to retain key decision-making authority.
- Financial holding company and bank holding company are different names for the same type of entity.
- The Federal Reserve may prevent the formation of a financial holding company if one of its insured depository institution subsidiaries is not well capitalized.
- Securitization refers to the process of splitting a single loan into several smaller loans.
- Transaction banking emphasizes the personal relationship between the banker and customer.
- Universal banks were originally centered in Western Europe.
Essay
- Briefly describe three things the government did in response to the failure of several large financial institutions in 2008.
- What are the advantages of forming a financial holding company versus forming a bank holding company?
- Briefly explain the differences between transactions banking and relationship banking.
- Briefly explain how securitization led contributed to the credit crisis of 2007 – 2009.
- Describe three of the various channels for delivering bank products.