D. market imperfection theory.
E. the efficiency contribution of banking.
Rose - Chapter 01 #50
51.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
D. Significant rise in the average size of individual banks
E. All of the options are correct
Rose - Chapter 01 #51
52.Included among leading structural trends in the U.S. banking industry in recent years are:
A. the number of independently owned banks has declined.
B. the average size of individual banking firms has increased.
C. entry across state lines from neighboring states has increased.
D. the mergers among some of the largest banks in the industry.
E. All of the options are correct.
Rose - Chapter 01 #52
53.Smaller, locally focused commercial and savings banks that offer narrower but more personalized menu of financial services are known as:
A. money-center banks.
B. community banks.
C. mutual funds.
D. state banks.
E. fringe banks.
Rose - Chapter 01 #53
54.The banking services that include marketing new securities to raise funds for corporations and other institutions is referred to:
A. comprehensive packaging.
B. wrap-around accounts.
C. investment banking.
D. professional banking.
E. None of the options are correct.
Rose - Chapter 01 #54
55.A bank that wires funds for the purchase of a beach house in South Carolina for a customer in Oklahoma is carrying out the __________ of banks.
A. intermediation role
B. payment role
C. guarantor role
D. agency role
E. policy role
Rose - Chapter 01 #55
56.Examples of imperfections in the financial system which allow banks to exist include which of the following?
A. Informational asymmetry
B. Efficiency of markets
C. Divisibility of assets
D. Adequate liquidity
E. All of the examples are of the imperfections that exist.
Rose - Chapter 01 #56
57.A bank which manages the investment portfolio and pays the bills of an elderly customer who is unable to do it for him or herself is carrying out the __________ of banks.
A. intermediation role
B. payment role
C. guarantor role
D. agency role
E. policy role
Rose - Chapter 01 #57
58.Which of the following is not a current trend in the banking industry?
A. The number of banks is declining
B. The number of bank branches is declining
C. The number of bank services is increasing
D. The number of bank competitors is increasing
E. Bank industry convergence
Rose - Chapter 01 #58
59.Which of the following types of banks would most likely offer the largest number of financial services virtually?
A. A retail bank
B. A community bank
C. A commercial bank
D. A universal bank
E. An international bank
Rose - Chapter 01 #59
60.The phenomenon of convergence refers to:
A. financial service firms expanding into other product lines.
B. firms reducing their product lines.
C. bank merger activity.
D. globalization in banking.
E. technological innovation in banking.
Rose - Chapter 01 #60
61.Bank equipment leasing activity involves:
A. a bank leasing its office facilities instead of buying.