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Exchange rates and trade

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I need some help with a timed homework. 2 hour limit, 100 multiple choice just theory no calculation.;Attachment Preview;homework 2.docx Download Attachment;Question 1;Which of the following trading practices is forbidden in the secondary market?;I. Trading on information that gives corporate insiders an unfair advantage over the public;II. Trading designed to manipulate securities prices at the expense of the public;III. Trading before true and adequate disclosure has been made to the public;Select one;A. I and II only;B. I and III only;C. II and III only;D. I, II, and III;Question 2;Question text;A primary offering occurs when;Select one;A. previously issued securities are traded among investors.;B. a company's previously issued securities are traded by a single broker.;C. corporations issue securities in order to secure additional financing.;D. purchases of marketable securities are made by the issuing company.;Question 3;Not yet answered;Marked out of 1.00;Flag question;Question text;Which of the following securities provisions created the Securities Exchange Commission (SEC) to enforce;securities laws and regulate U.S. securities markets?;Select one;A. The Securities Act of 1933;B. The Securities Exchange Act of 1934;C. Rule 415;D. Reg ATS;Question 4;Not yet answered;Marked out of 1.00;Flag question;Question text;Which of the following is true concerning commercial paper?;I. Commercial paper is offered in short-term maturities suitable for the money market;II. All public corporations qualify to issue commercial paper;III. The cost to the issuer of raising funds using commercial paper is usually lower than borrowing at the;prime lending rate;Select one;A. I and II only;B. I and III only;C. II and III only;D. I, II, and III;Question 5;Not yet answered;Marked out of 1.00;Flag question;Question text;Common money market instruments used by importers to guarantee funds owed to exporters are known as;Select one;A. negotiable certificates of deposit.;B. bankers' acceptances.;C. garnishment agreements.;D. repurchase agreements.;Question 6;Not yet answered;Marked out of 1.00;Flag question;Question text;Secondary markets;I. Allow investors to buy or sell previously issued securities;II. Provide additional funds to corporations when securities are traded;III. Promote market pricing competition for securities;Select one;A. I and II only;B. I and III only;C. II and III only;D. I, II, and III;Question 7;Not yet answered;Marked out of 1.00;Flag question;Question text;The majority of debt financing for U.S. corporations is raised on;Select one;A. the OTC market.;B. the NYSE.;C. ECNs.;D. None of the above.;Question 8;Not yet answered;Marked out of 1.00;Flag question;Question text;Which of the following securities provisions required registration and full disclosure of new securities;being issued in the U.S.?;Select one;A. The Securities Act of 1933;B. The Securities Exchange Act of 1934;C. Rule 415 (shelf registration);D. Reg ATS (alternative trading system);Question 9;Not yet answered;Marked out of 1.00;Flag question;Question text;The NASDAQ Exchange;I. Is divided into two market segments, a "National Market," and a "Small-Cap Market;II. Is less restrictive in its requirements for membershipies than the New York Stock Exchange (NYSE);III. Offers "unlisted" securities to investors;Select one;A. I and II only;B. I and III only;C. II and III only;D. I, II, and III;Question 10;Not yet answered;Marked out of 1.00;Flag question;Question text;Funds flow from __________ to __________ in the primary markets.;Select one;A. investors, issuing corporations;B. investors, other investors;C. issuing corporations, investors;D. All of the above.;Question 11;Which of the following is NOT true of the NASDAQ exchange?;I. It is located on Wall Street, where brokers transact business for clients;II. It was once operated by the National Association of Securities Dealers (NASD);III. It is a publicly-owned, not-for-profit exchange;Select one;A. I and II only;B. I and III only;C. II and III only;D. I, II, and III;Question 12;Question text;Secondary markets typically provide;I. Liquidity;II. Price competition;III. Deposit insurance;Select one;A. I and II only;B. I and III only;C. II and III only;D. I, II, and III;Question 13;Question text;Commercial paper securities;Select one;A. carry an interest rate that varies according to the firm's level of risk.;B. never have a term to maturity that exceeds 270 days.;C. are issued only by the largest and most creditworthy corporations, as they are unsecured.;D. all of the above.;E. only A and B of the above.;Question 14;Question text;In situations where asymmetric information problems are not severe;Select one;A. the money markets have a distinct cost advantage over banks in providing short-term funds.;B. the money markets cannot allocate short-term funds as efficiently as banks can.;C. banks have a distinct cost advantage over the money markets in providing short-term funds.;D. the money markets have a distinct cost advantage over banks in providing long-term funds.;Question 15;Question text;Money market transactions;Select one;A. are usually arranged purchases and sales between participants over the phone by traders and;completed electronically.;B. do not take place in any one particular location or building.;C. both (a) and (b).;D. none the the above.;Question 16;Question text;Which of the following statements about money market securities are true?;Select one;A. There is no well-developed secondary market for commercial paper.;B. The interest rates on all money market instruments move very closely together over time.;C. The secondary market for Treasury bills is extensive and well developed.;D. All of the above are true.;E. Only A and B of the above are true.;Question 17;Question text;Money market instruments;I. Typically have low default risk;II. Have short-term maturities;III. Are usually sold in large denominations;Select one;A. I only;B. I and II only;C. I and III only;D. II and III only;E. I, II, and III;Question 18;Question text;The primary function of large diversified brokerage firms in the money market is to;Select one;A. make a market for money market securities by maintaining an inventory from which to buy or sell.;B. buy T-bills from the U.S. Treasury Department.;C. buy money market securities from corporations that need liquidity.;D. sell money market securities to the Federal Reserve for its open market operations.;Question 19;Question text;Compared to money market securities, capital market securities have;Select one;A. less risk.;B. longer maturities.;C. more liquidity.;D. lower yields.;Question 20;Question text;Treasury bonds are subject to _________ risk but are free of _________ risk.;Select one;A. interest-rate, underwriting;B. default, interest-rate;C. interest-rate, default;D. default, underwriting;Question 21;A firm will borrow long-term;Select one;A. if short-term interest rates are expected to decline during the term of the debt.;B. if the extra interest cost of borrowing short-term due to rising interest rates does not exceed the;expected premium that is paid for borrowing long term.;C. if the extra interest cost of borrowing long-term is less than the expected cost of rising interest rates;before it retires its debt.;D. if long-term interest rates are expected to decline during the term of the debt.;Question 22;Question text;Capital market trading occurs in;Select one;A. the primary market.;B. the secondary market.;C. both A and B;D. none of the above.;Question 23;Question text;Bonds;Select one;A. are securities that represent a debt owed by the issuer to the investor.;B. obligate the issuer to pay a specified amount at a given date, generally without periodic interest;payments.;C. both A & B.;D. none of the above.;Question 24;Question text;Long-term unsecured bonds that are backed only by the general creditworthiness of the issuer are called;Select one;A. convertible bonds.;B. junk bonds.;C. debentures.;D. callable bonds.;Question 25;Question text;Which of the following is true of Electronic Communications Networks (ECNs)?;I. Transactions costs are lower for ECN trades;II. All unfilled orders are available for review by ECN traders;III. ECNs tend to work well for thinly-traded stocks;Select one;A. I only;B. I and II only;C. I and III only;D. II and III only;Question 26;Question text;Which of the following statements about trading operations in an organized ("floor") exchange is correct?;I. Floor traders all deal in a wide variety of stocks;II. In most trades, specialists buy for or sell from their own inventories;III. In most trades, specialists match buy and sell orders.;Select one;A. I only;B. II only;C. III only;D. I and II only;E. II and III only;Question 27;Question text;Preferred stockholders hold a claim on assets that has priority over the claims of;Select one;A. common stockholders, but after that of bondholders.;B. bondholders, but after that of common stockholders.;C. neither common stockholders nor bondholders.;D. both common stockholders and bondholders.;Question 28;Question text;Securities not listed on one of the exchanges trade in the over-the-counter market. In this exchange, dealers;make a market" by;Select one;A. selling stocks from inventory when investors want to buy.;B. buying stocks for inventory when investors want to sell.;C. doing both of the above.;D. doing neither of the above.;Question 29;Question text;How does over-the-counter (OTC) trading differ from trading on an organized exchange?;I. Requirements for trading OTC are less restrictive than on organized exchanges;II. Trading cannot be done electronically on organized exchanges;III. No publicly-traded stocks can be offered OTC;Select one;A. I only;B. I and II only;C. I and III only;D. II and III only;E. I, II, and III;Question 30;Question text;Which of the following is an objective of the Securities and Exchange Commission?;I. Maintain the integrity of the securities markets;II. Require firms to provide specific information to investors;III. Regulate major participants in securities markets;Select one;A. I only;B. I and II only;C. I and III only;D. II and III only;E. I, II, and III;Question 31;Which of the following are important ways in which mortgage markets differ from stock and bond;markets?;Select one;A. The usual borrowers in capital markets are government entities, whereas the usual borrowers in;mortgage markets are small businesses.;B. The usual borrowers in capital markets are government entities and large businesses, whereas the;usual borrowers in mortgage markets are small businesses.;C. The usual borrowers in capital markets are businesses and government entities, whereas the usual;borrowers in mortgage markets are individuals.;D. The usual borrowers in capital markets are government entities and large businesses, whereas the;usual borrowers in mortgage markets are small businesses and individuals.;Question 32;Question text;The Federal Housing Administration (FHA);Select one;A. provides insurance for certain mortgage contracts.;B. was set up to buy mortgages from thrifts so that these institutions could make more loans.;C. funds purchases of mortgages by selling bonds to the public.;D. all of the above.;E. only A and B of the above.;Question 33;Question text;Which of the following are important ways in which mortgage markets differ from the stock and bond;markets?;Select one;A. Because mortgages are made for different amounts and different maturities, developing a secondary;market has been more difficult.;B. Most mortgages are secured by real estate, whereas the majority of capital market borrowing is;unsecured.;C. The usual borrowers in the capital markets are government entities and businesses, whereas the;usual borrowers in the mortgage markets are individuals.;D. All of the above are important differences.;E. Only A and B of the above are important differences.;Question 34;Question text;The most common type of mortgage-backed security is;Select one;A. the participation certificate, a security which passes the borrower's mortgage payments equally;among all the owners of the certificates.;B. collateralized mortgage obligations, a security which reduces prepayment risk.;C. the mortgage pass-through, a security that has the borrower's mortgage payments pass through the;trustee before being disbursed to the investors.;D. the securitized mortgage, a security which increases the liquidity of otherwise illiquid mortgages.;Question 35;Question text;Mortgage-backed securities;Select one;A. are securities collateralized by both insured and uninsured mortgages.;B. have been growing in popularity in recent years as institutional investors look for attractive;investment opportunities.;C. are securities collateralized by a pool of mortgages.;D. all of the above.;E. only A and B of the above.;Question 36;Question text;The Federal National Mortgage Association (Fannie Mae);Select one;A. funds purchases of mortgages by selling bonds to the public.;B. was set up to buy mortgages from thrifts so that these institutions could make more loans.;C. provides insurance for certain mortgage contracts.;D. all of the above.;E. only A and B of the above.;Question 37;Question text;When the exchange rate changes from 1.0 euros to the dollar to 0.8 euros to the dollar, then the euro has;and the dollar has _________.;Select one;A. appreciated, appreciated;B. depreciated, depreciated;C. appreciated, depreciated;D. depreciated, appreciated;Question 38;Question text;Which of the following causes a depreciation of the domestic currency?;I. A lower expected domestic inflation rate.;II. A decrease in the domestic money supply.;III. A decline in the domestic real interest rate.;Select one;A. I only;B. II only;C. III only;D. I and II only;E. II and III only;Question 39;Question text;If the demand for _________ goods decreases relative to _________ goods, the domestic currency will;depreciate.;Select one;A. domestic, domestic;B. foreign, foreign;C. foreign, domestic;D. domestic, foreign;Question 40;Question text;Increased demand for a country's _________ causes its currency to appreciate in the long run, while;increased demand for _________ causes its currency to depreciate.;Select one;A. imports, exports;B. imports, imports;C. exports, imports;D. exports, exports;Question 41;Question text;When the exchange rate for the euro changes from $1.20 to $1.00, then, holding everything else constant;the euro has;Select one;A. depreciated and American wheat sold in Germany becomes less expensive.;B. appreciated and German cars sold in the United States become more expensive.;C. appreciated and German cars sold in the United States become less expensive.;D. depreciated and American wheat sold in Germany becomes more expensive.;Question 42;Question text;An increase in the foreign interest rate causes __________ in the demand for __________ currency and the;foreign currency to appreciate.;Select one;A. an increase, domestic;B. a decrease, foreign;C. an increase, foreign;D. none of the above;Question 43;Question text;A lower domestic money supply causes the domestic currency to;Select one;A. depreciate in the long run.;B. appreciate in the short run.;C. depreciate in the short run.;D. do both A and B of the above.;E. do both B and C of the above.;Question 44;Question text;The _________ states that exchange rates between any two currencies will adjust to reflect changes in the;price levels of the two countries.;Select one;A. quantity theory of money;B. theory of purchasing power parity;C. law of one price;D. theory of money neutrality;Question 45;Question text;A spot transaction in the foreign exchange market involves the;Select one;A. immediate (within two days) exchange of exports and imports.;B. exchange of bank deposits at a specified future date.;C. exchange of exports and imports at a specified future date.;D. immediate (within two days) exchange of bank deposits.;Question 46;Question text;When an increase in the money supply causes the exchange rate to fall by more in the short run than it does;in the long run, it is called;Select one;A. exchange rate overshooting.;B. the J-curve effect.;C. exchange rate disequilibrium.;D. none of the above.;Question 47;Question text;The Bretton Woods system was one in which central banks;Select one;A. agreed to limit domestic money growth to the average of the five largest industrial nations.;B. agreed not to intervene in the foreign exchange market to maintain a fixed exchange rate regime;that had existed prior to World War I.;C. agreed to limit domestic money growth to the average of the seven largest industrial nations.;D. bought and sold their own currencies to keep their exchange rates fixed.;Question 48;Question text;A foreign exchange intervention with an offsetting open market operation that leaves the monetary base;unchanged is called;Select one;A. an exchange rate feedback rule.;B. an unsterilized foreign exchange intervention.;C. a money neutral foreign exchange intervention.;D. a sterilized foreign exchange intervention.;Question 49;Question text;The difference between merchandise exports and imports is called the;Select one;A. capital account balance.;B. current account balance.;C. balance of payments.;D. trade balance.;Question 50;Question text;The official reserve transactions balance is referred to as;Select one;A. the capital account.;B. the current account.;C. net change in government international reserves.;D. the trade balance.;Question 51;Question text;The Bretton Woods agreement created the _________, which was given the task of promoting the growth;of world trade by setting rules for the maintenance of fixed exchange rates and by making loans to;countries that were experiencing balance of payments difficulties.;Select one;A. European Exchange Rate Mechanism (ERM);B. IMF;C. Bank of International Settlements;D. Central Settlements Bank;E. World Bank;Question 52;Question text;The Bretton Woods agreement set up the _________, which currently provides long-term loans to assist;developing countries to build dams, roads, and other physical capital that contributes to economic;development.;Select one;A. Central Settlements Bank;B. World Bank;C. International Monetary Fund;D. European Exchange Rate Mechanism (ERM);E. Bank of International Settlements;Question 53;Question text;A dirty float is when;Select one;A. The value of a currency is pegged relative to an anchor currency;B. The value of a currency is pegged relative to the value of one other currency;C. Countries intervene in foreign exchange markets in an attempt to influence their exchange rates by;buying and selling foreign assets;D.;The value of a currency is allowed to freely fluctuate against all other currencies;Question 54;Question text;When the central bank allows the purchase or sale of domestic currency to have an effect on the monetary;base, it is called;Select one;A. a money neutral foreign exchange intervention.;B. an exchange rate feedback rule.;C. a sterilized foreign exchange intervention.;D. an unsterilized foreign exchange intervention.;Question 55;Question text;What is the bookkeeping system for recording all receipts and payments that have a direct bearing on the;movement for funds between a nation and foreign countries?;Select one;A. Current Account;B. Trade balance;C. Balance of payments;D. Capital Account;Question 56;Question text;The current account balance plus the capital account balance equals;Select one;A. the trade balance.;B. the amount of unsterilized exchange market intervention.;C. the net change in government international reserves.;D. both A and C of the above.;Question 57;Question text;The bundling of GNMA-guaranteed mortgages into a saleable security (usually for large institutional;investors) is called;Select one;A. disintermediation.;B. hedge optioning.;C. securitization.;D. futures bundling.;E. quasi-intermediation.;Question 58;Question text;The main center of the Eurodollar market is;Select one;A. London.;B. Basel.;C. New York.;D. Paris.;Question 59;Question text;The practice of creating marketable debt instruments that are backed by otherwise illiquid assets is known;as;Select one;A. standardization.;B. securitization.;C. adverse selection.;D. homogenization.;Question 60;Question text;Investment banking activities of the commercial banks were blamed for many bank failures. This led to;Select one;A. the passage of the Garn-St. Germain Act of 1982.;B. the passage of the Glass-Steagall Act of 1933.;C. the passage of the National Bank Charter Amendments Act of 1918.;D. the passage of the National Bank Act of 1863.;E. the establishment of the Federal Deposit Insurance Corporation in 1933.;Question 61;Question text;In recent years, commercial banks have been allowed to;Select one;A. enter certain insurance markets.;B. invest in real estate.;C. underwrite stocks.;D. do all of the above.;E. only A and B of the above.;Question 62;Question text;The legislation that effectively prohibited banks from branching across state lines and forced all national;banks to conform to the branching regulations of the state in which they reside is the;Select one;A. Glass-Steagall Act.;B. Garn-St. Germain Act.;C. McFadden Act.;D. National Banking Act.;Question 63;Question text;High-yield bonds rated below investment grade by the bond-rating agencies are frequently referred to as;Select one;A. "fallen angels.;B. municipal bonds.;C. Yankee bonds.;D. junk bonds.;Question 64;Question text;Which regulatory body charters national banks?;Select one;A. The Comptroller of the Currency;B. The Federal Reserve;C. The Federal Deposit Insurance Corporation;D. None of the above;Question 65;Question text;The most important developments that have reduced banks' income advantages in the past twenty years;include;Select one;A. the growth of the junk bond market.;B. the growth of the commercial paper market.;C. the elimination of Regulation Q ceilings.;D. all of the above.;E. only A and B of the above.;Question 66;Question text;The Riegle-Neal Act of 1994;Select one;A. required all banks to become universal banks.;B. allowed banks to underwrite insurance and securities and engage in real estate activities.;C. removed ceilings on bank deposit interest rates.;D. overturned prohibitions on interstate banking and branching.;Question 67;Question text;Credit unions' main type of loans is;Select one;A. Home mortgage and auto loans;B. Small business loans;C. Credit card loans;D. Nonresidential real estate loans;Question 68;Question text;The S & L Crisis in the 1980s;Select one;A. was at the time, the most severe financial crisis since the Great Depression;B. was exacerbated by the practice of borrowing short and lending long;C. was not affected by regulatory forbearance;D. Both A and B are correct;Question 69;Question text;Credit unions are characterized by;I. Common-bond membership;II. Non-profit, tax-exempt status;III. Mutual ownership;Select one;A. I only;B. I and II only;C. I and III only;D. II and III only;E. I, II, and III;Question 70;Question text;The Federal Deposit Insurance Corporation Improvement Act (FDICA) of 1991;Select one;A. Recapitalized the FDIC;B. Limited brokered deposits and the too-big-to fail policy;C. Instructed the FDIC to establish risk-based premiums;D. did all of the above.;E. did only A and B of the above.;Question 71;Question text;The Competitive Equality in Banking Act of 1987;Select one;A. discouraged regulators from pursuing regulatory forbearance.;B. encouraged regulators to continue their policy of regulatory forbearance.;C. directed regulators to close "zombie S&Ls" as quickly as administratively possible.;D. did both A and B of the above.;Question 72;Question text;The main source of funds at savings and loan associations is;Select one;A. borrowing in the capital market.;B. deposits.;C. equity capital.;D. borrowing in the money market.;Question 73;Question text;To act in the tax payer's interest and low costs to the deposit insurance agency, regulators must;Select one;A. set tight restrictions on holding assets that are too risky.;B. not adopt a stance of regulatory forbearance.;C. impose high capital requirements.;D. all of the above.;Question 74;Question text;Since the early 1990s, the number of savings and loan associations has _________ and the average size (in;assets) has _________.;Select one;A. risen, risen;B. risen, declined;C. declined, declined;D. declined, risen;Question 75;Question text;The major provisions of the Financial Institutions Reform, Recovery and Enforcement Act of 1989;included;I. Establishing the Resolution Trust Corporation to manage and liquidate insolvent thrifts;II. Increased deposit insurance;III. Implementing new lending restrictions;Select one;A. I only;B. I and II only;C. I and III only;D. II and III only;E. I, II, and III;Question 76;Question text;Since 1993, the number of savings and loan associations has;Select one;A. risen slightly.;B. held steady.;C. declined substantially.;D. risen sharply.;Question 77;Question text;Which of the following is true concerning multilateral financial institutions? Multilaterals;Select one;A. receive primary funding from the world's major industrialized nations.;B. offer official development assistance to developing countries.;C. have been criticized for driving countries further ito debt and financial vulnerability.;D. All of the above.;Question 78;Question text;Faced with a continuing drain of U.S. gold reserves, the U.S. chose to;Select one;A. allow interest rates to rise in order to attract gold back into U.S. vaults.;B. lower the exchange ratio of dollars to gold from 1/35 ounce to 1/70 ounce.;C. eliminate the redemption of foreign-held U.S. dollars for gold.;D. end the military draft in an effort to boost U.S. productivity.;Question 79;Question text;Today's major industrialized nations are using a foreign exchange system known as;Select one;A. managed float;B. pegged rates;C. free float;D. fixed rates;Question 80;Question text;The The International Monetary Fund (IMF);I. Is considered to be the international lender of last resort.;II. Is primarily responsible for determining U.S. monetary policy and short-term interest rates.;III. Makes structural adjustment loans, which are often extended, to countries with a variety of debt-related;problems.;Select one;A. I and II only;B. I and III only;C. II and III only;D. I, II, and III;Question 81;Question text;Under a system of floating exchange rates, which of the following conditions would the Canadian dollar;tend to appreciate in value against the U.S. dollar?;Select one;A. Canadian banks offer lower rates of interest than U.S. banks.;B. The rate of inflation in Canada is lower than in the U.S.;C. There is a rising demand for U.S. goods on the part of Canadian consumers.;D. Canadians perceive that the U.S. is about to experience higher economic growth.;Question 82;Question text;Which of the following will lead an American to exchange U.S. dollars for British pounds?;Select one;A. Importing a case of British salmon;B. Purchasing a cottage in the British countryside;C. Investing in a British manufacturing company;D. All of the above;Question 83;Question text;The Bank for International Settlements (BIS);Select one;A. provides short-term bridge loans to nations facing an immediate financial crisis.;B. is a "think-tank" for central bankers in matters concerning international finance.;C. is considered to be authoritative concerning matters of international finance.;D. all of the above.;Question 84;Question text;The foreign-exchange system adopted at the Bretton Woods Conference can be characterized as a;Select one;A. traditional gold standard.;B. floating exchange standard.;C. fixed exchange standard.;D. non-interventionist standard.;Question 85;Question text;Which of the following was a managed float agreement signed by the major industrialized nations in 1987?;Select one;A. The Greenspan Currency Control Act;B. The Western Currency Management Agreement;C. The Geneva Exchange Rate Accord;D. The Louvre Currency Stabilization Accord;Question 86;Question text;An inflow of U.S. dollars to the U.S. Balance of Payments account will occur when;Select one;A. the U.S. buys foreign currency in international markets.;B. the U.S. donates foreign aid to other countries.;C. Americans make investments in foreign assets.;D. the U.S. exports merchandise to foreign countries.;Question 87;Question text;All else held constant, the near-term result of a decrease in the exchange value of country A's currency;against country B's currency would most likely;Select one;A. increase A's exports to B.;B. decrease B's trade deficit with A.;C. increase B's exports to A.;D. decrease B's imports from A.;Question 88;Question text;Which of the following multilateral institutions provides long-term development loans to governments of;developing nations?;Select one;A. The BIS;B. The IMF;C. The World Bank;D. All of the above;Question 89;Question text;Corporations with a controlling interest in one or more affiliated banks are known as;Select one;A. commercial banks.;B. bank holding companies.;C. government sponsored enterprises.;D. mutual fund companies.;Question 90;Question text;Credit unions;I. Offer their members savings and checking services similar to those of commercial banks;II. Are non-profit entities that typically pass cost savings on to members;III. Are insured by the Federal Deposit Insurance Corporation (FDIC);Select one;A. I and II only;B. I and III only;C. II and III only;D. I, II, and III;Question 91;Question text;Which of the following statements is true international banking?;I. The explosive growth in Eurodollar lending has led to an increase in the number of U.S. branch banks;abroad;II. Due to trade restrictions, foreign banks have not been successful in the U.S., where they do very little;banking;III. Stricter regulations abroad makes international banking more expensive for U.S. banks;Select one;A. I only;B. I and II only;C. I and III only;D. II and III only;E. I, II, and III;Question 92;Question text;Which of the following statements is true regarding bank charters?;I. National banks are chartered by the U.S. comptroller of the currency.;II. Banks may be chartered at either the national or state level.;III. Only nationally-chartered banks can be members of the Federal Reserve System;Select one;A. I and II only;B. I and III only;C. II and III only;D. I, II, and III;Question 93;Question text;Which of the following, enacted in 1933 for the purpose of separating commercial and investment banking;in the U.S., was repealed in 1999 by passage of the Gramm-Leach-Bliley Act?;Select one;A. The Glass-Steagall Act;B. The Stevens-Seagal Act;C. The Morgan-Stanley Act;D. The Commercial Securities Act;Question 94;Question text;Most domestic banks in the U.S. are;Select one;A. nationally chartered.;B. state chartered.;C. members of the Federal Reserve System.;D. all of the above.;Question 95;Question text;By law, credit unions are;I. Not-for-profit depository intermediaries;II. Tax-exempt financial institutions;III. Disallowed from engaging in any business lending;Select one;A. I only;B. I and II only;C. I and III only;D. II and III only;E. I, II, and III;Question 96;Question text;Financial holding companies are;I. Companies that hold a variety of different types of financial institutions;II. Are currently being regulated by the U.S. Office of the Comptroller of the Currency;III. Cannot hold both depository and non-depository financial intermediaries;Select one;A. I only;B. I and II only;C. I and III only;D. II and III only;E. I, II, and III;Question 97;Question text;Which of the following is true concerning depository financial intermediaries?;I. They are important to the channeling of funds between lenders and borrowers.;II. They are chartered and regulated in an effort to protect depositors and the financial system.;III. They are required to make loans to anyone with an adequate credit score.;Select one;A. I and II only;B. I and III only;C. II and III only;D. I, II, and III;Question 98;Question text;A large domestic bank with headquarters in New York City that provides international lending and;payments services to large, multinational business firms is most likely to be a;Select one;A. Money Center bank;B. Regional bank;C. Mid-Market bank;D. Community bank;Question 99;Question text;The difference between what a commercial bank pays for its deposits and what it earns on its loans is called;the;Select one;A. margin interest or lending spread.;B. earnings before interest and taxes.;C. return on shareholder's investment.;D. underwriting spread.;Question 100;Question text;Which of the following acts broke down the wall of separation betw

 

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