money-center
Rose - Chapter 01 #13
14._____________ refers to the movement of businesses across industry lines in order to broaden its base.
Convergence
Rose - Chapter 01 #14
15.Banks which serve primarily households and small firms are known as ____________ banks.
retail
Rose - Chapter 01 #15
16.Banks that sell deposits and make loans to businesses, individuals, and institutions are known as _____________ banks.
commercial
Rose - Chapter 01 #16
17.Banks which underwrite issues of new securities on behalf their corporate customers are known as ________ banks.
investment
Rose - Chapter 01 #17
18.Banks which function under a federal charter through the Comptroller of the Currency in the United States are known as ____________ banks.
national
Rose - Chapter 01 #18
19.Banks which supply both debt and equity capital to businesses are known as _________ banks.
merchant
Rose - Chapter 01 #19
20.A bank that offers its services only over the Internet is known as a(n) _______.
virtual bank
Rose - Chapter 01 #20
21.When a local merchant sells the accounts receivables they hold against their customer to a bank this generally known as _______.
discounting commercial notes
Rose - Chapter 01 #21
22.A(n) ________ offers loans to commercial enterprises (such as appliance dealers) and to individuals and families using funds borrowed in the open market or from other financial institutions.
finance company
Rose - Chapter 01 #22
23.A(n) ________ buys and sells securities on behalf of their customers and for their own accounts. Examples of this type of financial service provider include Merrill Lynch and Charles Schwab.
security broker (or dealer)
Rose - Chapter 01 #23
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.
hedge fund
Rose - Chapter 01 #24
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.
cash management
Rose - Chapter 01 #25
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.
FALSE
Rose - Chapter 01 #26
27.Nonbank financial-service institutions can offer deposits to the public, but these deposits are not eligible for insurance coverage by the FDIC.
FALSE
Rose - Chapter 01 #27
28.The etymological roots of the word "bank" trace this word back to an Italian term referring to a "money-changer's table".
TRUE
Rose - Chapter 01 #28
29.According to the textbook, the largest banks tend to offer the widest range of services of any financial-service firm today.
TRUE
Rose - Chapter 01 #29
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
Rose - Chapter 01 #30
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.
FALSE
Rose - Chapter 01 #31
32.The role performed by banks in the economy in which they transform savings into credit is known as the intermediation role.
TRUE
Rose - Chapter 01 #32
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.