Details of this Paper

FINANCE MCQS-Which of the following trading practices is forbidden in the secondary market...

Description

solution


Question

Question;Question 1Which of the following trading practices is forbidden in the secondary market?I. Trading on information that gives corporate insiders an unfair advantage over the publicII. Trading designed to manipulate securities prices at the expense of the publicIII. Trading before true and adequate disclosure has been made to the publicSelect one:A. I and II onlyB. I and III onlyC. II and III onlyD. I, II, and IIIQuestion 2Question textA primary offering occurs whenSelect 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 3Not yet answeredMarked out of 1.00Flag questionQuestion textWhich of the following securities provisions created the Securities Exchange Commission (SEC) to enforcesecurities laws and regulate U.S. securities markets?Select one:A. The Securities Act of 1933B. The Securities Exchange Act of 1934C. Rule 415D. Reg ATSQuestion 4Not yet answeredMarked out of 1.00Flag questionQuestion textWhich of the following is true concerning commercial paper?I. Commercial paper is offered in short-term maturities suitable for the money marketII. All public corporations qualify to issue commercial paperIII. The cost to the issuer of raising funds using commercial paper is usually lower than borrowing at theprime lending rateSelect one:A. I and II onlyB. I and III onlyC. II and III onlyD. I, II, and IIIQuestion 5Not yet answeredMarked out of 1.00Flag questionQuestion textCommon money market instruments used by importers to guarantee funds owed to exporters are known asSelect one:A. negotiable certificates of deposit.B. bankers' acceptances.C. garnishment agreements.D. repurchase agreements.Question 6Not yet answeredMarked out of 1.00Flag questionQuestion textSecondary markets:I. Allow investors to buy or sell previously issued securitiesII. Provide additional funds to corporations when securities are tradedIII. Promote market pricing competition for securitiesSelect one:A. I and II onlyB. I and III onlyC. II and III onlyD. I, II, and IIIQuestion 7Not yet answeredMarked out of 1.00Flag questionQuestion textThe majority of debt financing for U.S. corporations is raised onSelect one:A. the OTC market.B. the NYSE.C. ECNs.D. None of the above.Question 8Not yet answeredMarked out of 1.00Flag questionQuestion textWhich of the following securities provisions required registration and full disclosure of new securitiesbeing issued in the U.S.?Select one:A. The Securities Act of 1933B. The Securities Exchange Act of 1934C. Rule 415 (shelf registration)D. Reg ATS (alternative trading system)Question 9Not yet answeredMarked out of 1.00Flag questionQuestion textThe 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 investorsSelect one:A. I and II onlyB. I and III onlyC. II and III onlyD. I, II, and IIIQuestion 10Not yet answeredMarked out of 1.00Flag questionQuestion textFunds flow from __________ to __________ in the primary markets.Select one:A. investors, issuing corporationsB. investors, other investorsC. issuing corporations, investorsD. All of the above.Question 11Which of the following is NOT true of the NASDAQ exchange?I. It is located on Wall Street, where brokers transact business for clientsII. It was once operated by the National Association of Securities Dealers (NASD)III. It is a publicly-owned, not-for-profit exchangeSelect one:A. I and II onlyB. I and III onlyC. II and III onlyD. I, II, and IIIQuestion 12Question textSecondary markets typically provide:I. LiquidityII. Price competitionIII. Deposit insuranceSelect one:A. I and II onlyB. I and III onlyC. II and III onlyD. I, II, and IIIQuestion 13Question textCommercial paper securitiesSelect 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 14Question textIn 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 15Question textMoney market transactionsSelect one:A. are usually arranged purchases and sales between participants over the phone by traders andcompleted electronically.B. do not take place in any one particular location or building.C. both (a) and (b).D. none the the above.Question 16Question textWhich 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 17Question textMoney market instruments:I. Typically have low default riskII. Have short-term maturitiesIII. Are usually sold in large denominationsSelect one:A. I onlyB. I and II onlyC. I and III onlyD. II and III onlyE. I, II, and IIIQuestion 18Question textThe primary function of large diversified brokerage firms in the money market is toSelect 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 19Question textCompared to money market securities, capital market securities haveSelect one:A. less risk.B. longer maturities.C. more liquidity.D. lower yields.Question 20Question textTreasury bonds are subject to _________ risk but are free of _________ risk.Select one:A. interest-rate, underwritingB. default, interest-rateC. interest-rate, defaultD. default, underwritingQuestion 21A firm will borrow long-termSelect 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 theexpected 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 ratesbefore it retires its debt.D. if long-term interest rates are expected to decline during the term of the debt.Question 22Question textCapital market trading occurs inSelect one:A. the primary market.B. the secondary market.C. both A and BD. none of the above.Question 23Question textBondsSelect 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 interestpayments.C. both A & B.D. none of the above.Question 24Question textLong-term unsecured bonds that are backed only by the general creditworthiness of the issuer are calledSelect one:A. convertible bonds.B. junk bonds.C. debentures.D. callable bonds.Question 25Question textWhich of the following is true of Electronic Communications Networks (ECNs)?I. Transactions costs are lower for ECN tradesII. All unfilled orders are available for review by ECN tradersIII. ECNs tend to work well for thinly-traded stocksSelect one:A. I onlyB. I and II onlyC. I and III onlyD. II and III onlyQuestion 26Question textWhich of the following statements about trading operations in an organized ("floor") exchange is correct?I. Floor traders all deal in a wide variety of stocksII. In most trades, specialists buy for or sell from their own inventoriesIII. In most trades, specialists match buy and sell orders.Select one:A. I onlyB. II onlyC. III onlyD. I and II onlyE. II and III onlyQuestion 27Question textPreferred stockholders hold a claim on assets that has priority over the claims ofSelect 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 28Question textSecurities not listed on one of the exchanges trade in the over-the-counter market. In this exchange, dealers"make a market" bySelect 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 29Question textHow does over-the-counter (OTC) trading differ from trading on an organized exchange?I. Requirements for trading OTC are less restrictive than on organized exchangesII. Trading cannot be done electronically on organized exchangesIII. No publicly-traded stocks can be offered OTCSelect one:A. I onlyB. I and II onlyC. I and III onlyD. II and III onlyE. I, II, and IIIQuestion 30Question textWhich of the following is an objective of the Securities and Exchange Commission?I. Maintain the integrity of the securities marketsII. Require firms to provide specific information to investorsIII. Regulate major participants in securities marketsSelect one:A. I onlyB. I and II onlyC. I and III onlyD. II and III onlyE. I, II, and IIIQuestion 31Which of the following are important ways in which mortgage markets differ from stock and bondmarkets?Select one:A. The usual borrowers in capital markets are government entities, whereas the usual borrowers inmortgage markets are small businesses.B. The usual borrowers in capital markets are government entities and large businesses, whereas theusual borrowers in mortgage markets are small businesses.C. The usual borrowers in capital markets are businesses and government entities, whereas the usualborrowers in mortgage markets are individuals.D. The usual borrowers in capital markets are government entities and large businesses, whereas theusual borrowers in mortgage markets are small businesses and individuals.Question 32Question textThe 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 33Question textWhich of the following are important ways in which mortgage markets differ from the stock and bondmarkets?Select one:A. Because mortgages are made for different amounts and different maturities, developing a secondarymarket has been more difficult.B. Most mortgages are secured by real estate, whereas the majority of capital market borrowing isunsecured.C. The usual borrowers in the capital markets are government entities and businesses, whereas theusual 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 34Question textThe most common type of mortgage-backed security isSelect one:A. the participation certificate, a security which passes the borrower's mortgage payments equallyamong 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 thetrustee before being disbursed to the investors.D. the securitized mortgage, a security which increases the liquidity of otherwise illiquid mortgages.Question 35Question textMortgage-backed securitiesSelect 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 attractiveinvestment opportunities.C. are securities collateralized by a pool of mortgages.D. all of the above.E. only A and B of the above.Question 36Question textThe 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 37Question textWhen 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, appreciatedB. depreciated, depreciatedC. appreciated, depreciatedD. depreciated, appreciatedQuestion 38Question textWhich 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 onlyB. II onlyC. III onlyD. I and II onlyE. II and III onlyQuestion 39Question textIf the demand for _________ goods decreases relative to _________ goods, the domestic currency willdepreciate.Select one:A. domestic, domesticB. foreign, foreignC. foreign, domesticD. domestic, foreignQuestion 40Question textIncreased demand for a country's _________ causes its currency to appreciate in the long run, whileincreased demand for _________ causes its currency to depreciate.Select one:A. imports, exportsB. imports, importsC. exports, importsD. exports, exportsQuestion 41Question textWhen the exchange rate for the euro changes from $1.20 to $1.00, then, holding everything else constant,the euro hasSelect 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 42Question textAn increase in the foreign interest rate causes __________ in the demand for __________ currency and theforeign currency to appreciate.Select one:A. an increase, domesticB. a decrease, foreignC. an increase, foreignD. none of the aboveQuestion 43Question textA lower domestic money supply causes the domestic currency toSelect 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 44Question textThe _________ states that exchange rates between any two currencies will adjust to reflect changes in theprice levels of the two countries.Select one:A. quantity theory of moneyB. theory of purchasing power parityC. law of one priceD. theory of money neutralityQuestion 45Question textA spot transaction in the foreign exchange market involves theSelect 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 46Question textWhen an increase in the money supply causes the exchange rate to fall by more in the short run than it doesin the long run, it is calledSelect one:A. exchange rate overshooting.B. the J-curve effect.C. exchange rate disequilibrium.D. none of the above.Question 47Question textThe Bretton Woods system was one in which central banksSelect 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 regimethat 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 48Question textA foreign exchange intervention with an offsetting open market operation that leaves the monetary baseunchanged is calledSelect 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 49Question textThe difference between merchandise exports and imports is called theSelect one:A. capital account balance.B. current account balance.C. balance of payments.D. trade balance.Question 50Question textThe official reserve transactions balance is referred to asSelect one:A. the capital account.B. the current account.C. net change in government international reserves.D. the trade balance.Question 51Question textThe Bretton Woods agreement created the _________, which was given the task of promoting the growthof world trade by setting rules for the maintenance of fixed exchange rates and by making loans tocountries that were experiencing balance of payments difficulties.Select one:A. European Exchange Rate Mechanism (ERM)B. IMFC. Bank of International SettlementsD. Central Settlements BankE. World BankQuestion 52Question textThe Bretton Woods agreement set up the _________, which currently provides long-term loans to assistdeveloping countries to build dams, roads, and other physical capital that contributes to economicdevelopment.Select one:A. Central Settlements BankB. World BankC. International Monetary FundD. European Exchange Rate Mechanism (ERM)E. Bank of International SettlementsQuestion 53Question textA dirty float is when:Select one:A. The value of a currency is pegged relative to an anchor currencyB. The value of a currency is pegged relative to the value of one other currencyC. Countries intervene in foreign exchange markets in an attempt to influence their exchange rates bybuying and selling foreign assetsD.The value of a currency is allowed to freely fluctuate against all other currenciesQuestion 54Question textWhen the central bank allows the purchase or sale of domestic currency to have an effect on the monetarybase, it is calledSelect 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 55Question textWhat is the bookkeeping system for recording all receipts and payments that have a direct bearing on themovement for funds between a nation and foreign countries?Select one:A. Current AccountB. Trade balanceC. Balance of paymentsD. Capital AccountQuestion 56Question textThe current account balance plus the capital account balance equalsSelect 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 57Question textThe bundling of GNMA-guaranteed mortgages into a saleable security (usually for large institutionalinvestors) is calledSelect one:A. disintermediation.B. hedge optioning.C. securitization.D. futures bundling.E. quasi-intermediation.Question 58Question textThe main center of the Eurodollar market isSelect one:A. London.B. Basel.C. New York.D. Paris.Question 59Question textThe practice of creating marketable debt instruments that are backed by otherwise illiquid assets is knownasSelect one:A. standardization.B. securitization.C. adverse selection.D. homogenization.Question 60Question textInvestment banking activities of the commercial banks were blamed for many bank failures. This led toSelect 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 61Question textIn recent years, commercial banks have been allowed toSelect 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 62Question textThe legislation that effectively prohibited banks from branching across state lines and forced all nationalbanks to conform to the branching regulations of the state in which they reside is theSelect one:A. Glass-Steagall Act.B. Garn-St. Germain Act.C. McFadden Act.D. National Banking Act.Question 63Question textHigh-yield bonds rated below investment grade by the bond-rating agencies are frequently referred to asSelect one:A. "fallen angels."B. municipal bonds.C. Yankee bonds.D. junk bonds.Question 64Question textWhich regulatory body charters national banks?Select one:A. The Comptroller of the CurrencyB. The Federal ReserveC. The Federal Deposit Insurance CorporationD. None of the aboveQuestion 65Question textThe most important developments that have reduced banks' income advantages in the past twenty yearsincludeSelect 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 66Question textThe Riegle-Neal Act of 1994Select 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 67Question textCredit unions' main type of loans is:Select one:A. Home mortgage and auto loansB. Small business loansC. Credit card loansD. Nonresidential real estate loansQuestion 68Question textThe S & L Crisis in the 1980sSelect one:A. was at the time, the most severe financial crisis since the Great DepressionB. was exacerbated by the practice of borrowing short and lending longC. was not affected by regulatory forbearanceD. Both A and B are correctQuestion 69Question textCredit unions are characterized by:I. Common-bond membershipII. Non-profit, tax-exempt statusIII. Mutual ownershipSelect one:A. I onlyB. I and II onlyC. I and III onlyD. II and III onlyE. I, II, and IIIQuestion 70Question textThe Federal Deposit Insurance Corporation Improvement Act (FDICA) of 1991Select one:A. Recapitalized the FDICB. Limited brokered deposits and the too-big-to fail policyC. Instructed the FDIC to establish risk-based premiumsD. did all of the above.E. did only A and B of the above.Question 71Question textThe Competitive Equality in Banking Act of 1987Select 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 72Question textThe main source of funds at savings and loan associations isSelect one:A. borrowing in the capital market.B. deposits.C. equity capital.D. borrowing in the money market.Question 73Question textTo act in the tax payer's interest and low costs to the deposit insurance agency, regulators mustSelect 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 74Question textSince the early 1990s, the number of savings and loan associations has _________ and the average size (inassets) has _________.Select one:A. risen, risenB. risen, declinedC. declined, declinedD. declined, risenQuestion 75Question textThe major provisions of the Financial Institutions Reform, Recovery and Enforcement Act of 1989included:I. Establishing the Resolution Trust Corporation to manage and liquidate insolvent thriftsII. Increased deposit insuranceIII. Implementing new lending restrictionsSelect one:A. I onlyB. I and II onlyC. I and III onlyD. II and III onlyE. I, II, and IIIQuestion 76Question textSince 1993, the number of savings and loan associations hasSelect one:A. risen slightly.B. held steady.C. declined substantially.D. risen sharply.Question 77Question textWhich 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 78Question textFaced with a continuing drain of U.S. gold reserves, the U.S. chose toSelect 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 79Question textToday's major industrialized nations are using a foreign exchange system known asSelect one:A. managed floatB. pegged ratesC. free floatD. fixed ratesQuestion 80Question textThe 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-relatedproblems.Select one:A. I and II onlyB. I and III onlyC. II and III onlyD. I, II, and IIIQuestion 81Question textUnder a system of floating exchange rates, which of the following conditions would the Canadian dollartend 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 82Question textWhich of the following will lead an American to exchange U.S. dollars for British pounds?Select one:A. Importing a case of British salmonB. Purchasing a cottage in the British countrysideC. Investing in a British manufacturing companyD. All of the aboveQuestion 83Question textThe 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 84Question textThe foreign-exchange system adopted at the Bretton Woods Conference can be characterized as aSelect one:A. traditional gold standard.B. floating exchange standard.C. fixed exchange standard.D. non-interventionist standard.Question 85Question textWhich of the following was a managed float agreement signed by the major industrialized nations in 1987?Select one:A. The Greenspan Currency Control ActB. The Western Currency Management AgreementC. The Geneva Exchange Rate AccordD. The Louvre Currency Stabilization AccordQuestion 86Question textAn inflow of U.S. dollars to the U.S. Balance of Payments account will occur whenSelect 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 87Question textAll else held constant, the near-term result of a decrease in the exchange value of country A's currencyagainst country B's currency would most likelySelect 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 88Question textWhich of the following multilateral institutions provides long-term development loans to governments ofdeveloping nations?Select one:A. The BISB. The IMFC. The World BankD. All of the aboveQuestion 89Question textCorporations with a controlling interest in one or more affiliated banks are known asSelect one:A. commercial banks.B. bank holding companies.C. government sponsored enterprises.D. mutual fund companies.Question 90Question textCredit unions:I. Offer their members savings and checking services similar to those of commercial banksII. Are non-profit entities that typically pass cost savings on to membersIII. Are insured by the Federal Deposit Insurance Corporation (FDIC)Select one:A. I and II onlyB. I and III onlyC. II and III onlyD. I, II, and IIIQuestion 91Question textWhich 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 banksabroadII. Due to trade restrictions, foreign banks have not been successful in the U.S., where they do very littlebankingIII. Stricter regulations abroad makes international banking more expensive for U.S. banksSelect one:A. I onlyB. I and II onlyC. I and III onlyD. II and III onlyE. I, II, and IIIQuestion 92Question textWhich 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 SystemSelect one:A. I and II onlyB. I and III onlyC. II and III onlyD. I, II, and IIIQuestion 93Question textWhich of the following, enacted in 1933 for the purpose of separating commercial and investment bankingin the U.S., was repealed in 1999 by passage of the Gramm-Leach-Bliley Act?Select one:A. The Glass-Steagall ActB. The Stevens-Seagal ActC. The Morgan-Stanley ActD. The Commercial Securities ActQuestion 94Question textMost domestic banks in the U.S. areSelect one:A. nationally chartered.B. state chartered.C. members of the Federal Reserve System.D. all of the above.Question 95Question textBy law, credit unions are:I. Not-for-profit depository intermediariesII. Tax-exempt financial institutionsIII. Disallowed from engaging in any business lendingSelect one:A. I onlyB. I and II onlyC. I and III onlyD. II and III onlyE. I, II, and IIIQuestion 96Question textFinancial holding companies are:I. Companies that hold a variety of different types of financial institutionsII. Are currently being regulated by the U.S. Office of the Comptroller of the CurrencyIII. Cannot hold both depository and non-depository financial intermediariesSelect one:A. I onlyB. I and II onlyC. I and III onlyD. II and III onlyE. I, II, and IIIQuestion 97Question textWhich 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 onlyB. I and III onlyC. II and III onlyD. I, II, and IIIQuestion 98Question textA large domestic bank with headquarters in New York City that provides international lending andpayments services to large, multinational business firms is most likely to be a:Select one:A. Money Center bankB. Regional bankC. Mid-Market bankD. Community bankQuestion 99Question textThe difference between what a commercial bank pays for its deposits and what it earns on its loans is calledtheSelect one:A. margin interest or lending spread.B. earnings before interest and taxes.C. return on shareholder's investment.D. underwriting spread.Question 100Question textWhich of the following acts broke down the wall of separation between securities underwriting andcommercial lending?Select one:A. Gramm-Leach-Bliley Financial Services Modernization ActB. Riegle-Neal Interstate Banking and Branching Efficiency Act (IBBEA)C. Financial Institutions Reform, Recovery, and Enforcement Act (FIRREA)D. None of the above

 

Paper#47480 | Written in 18-Jul-2015

Price : $57
SiteLock