________________________________________
24.A(n) ________ sells shares mainly to upscale investors in a broad group of different kinds of assets including nontraditional investments in commodities, real estate, loans to new and ailing companies, and other risky assets.
________________________________________
25.When a bank agrees to handle the cash collections and disbursements for a company and invest any temporary cash surpluses in interest bearing assets, they are providing ________ services to their customers.
________________________________________
26.Under U.S. federal law, an institution making only loans to households and offering uninsured checkable deposits and savings deposits qualifies as a commercial bank.
True False
27.Nonbank financial-service institutions can offer deposits to the public, but these deposits are not eligible for insurance coverage by the FDIC.
True False
28.The etymological roots of the word "bank" trace this word back to an Italian term referring to a "money-changer's table".
True False
29.According to the textbook, the largest banks tend to offer the widest range of services of any financial-service firm today.
True False
30.According to the delegated monitoring theory, the bank serves as an agent on behalf of its depositors, monitoring the financial condition of those customers who receive loans from them.
True False
31.Managing the financial affairs and property of individuals and business firms falls under the type of banking service line known as cash management services.
True False
32.The role performed by banks in the economy in which they transform savings into credit is known as the intermediation role.
True False
33.The role performed by banks in which they guarantee to make payments on behalf of their customers when those customers are unable to pay a debt obligation is known as the guarantor role.
True False
34.When banks serve as conduits for government policy this is referred to as their agency role.
True False
35.According to the textbook, high-volume transactions are required to make efficient use of automation and other technological innovations.
True False
36.The number of independently owned banks has risen in the United States over the last decade.
True False
37.Money-center banks usually service local communities, towns, and cities, offering a narrow menu of services to the public.
True False
38.A greater proportion of major corporations have deserted the banking system in recent years to raise borrowed funds directly from the open market.
True False
39.The recent erosion of the banking market share relative to other financial institutions means that banking is a dying industry.
True False
40.Lending institutions act as delegated monitors and can diversify and reduce their risk exposure, resulting in increased safety for savers' funds.
True False
41.Current theory suggests that banks exist because of imperfections in our financial system.
True False
42.According to the textbook, traditional banking may be on the decline.
True False
43.Convergence refers to the fact that the number of bank mergers has increased in recent years.
True False
44.Banks which offer virtually all financial services are known as universal banks.
True False
45.Banks have now expanded their service offerings into providing investment banking, insurance protection, financial planning, and other services rather than restricting themselves to traditional financial services.
True False
46.In the United States, a commercial bank qualifies as a "bank" under federal law if it offers: