A. consumer installment loans, CDs.
B. trust services, commercial loans.
C. checking accounts, commercial loans.
D. security investments, inventory loans to business customers.
E. commercial deposit accounts, consumer savings plans.
47.J.C. Penney, and Sears provided are among leading firms that in the 1980s organized competitors with banks that are known as:
A. nonbank financial-service institutions.
B. discount security companies.
C. savings institutions.
D. credit unions.
E. commercial banks.
48.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 options are correct
49.Banks perform the indispensable task of:
A. creating money without making loans.
B. absorbing the excess liquidity created by other financial institutions.
C. intermediating between surplus-spending parties and deficit-spending parties.
D. issuing risky deposits.
E. None of the options are correct
50.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.
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
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.
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.
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.
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
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.
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