Human Resource

Bank and Finance

Chapter 1 quiz

1. In the United States a commercial bank qualifies as a "bank" under federal law if it offers:

a) Consumer installment loans, CDs

b) Savings deposits, commercial loans

c) Checking accounts, commercial loans

d) Commercial deposit accounts, consumer savings plans

2. The view that depositors hire banks to analyze the financial condition of prospective borrowers an continually evaluate the condition of outstanding loans is referred to as:

a) Delegated monitoring theory.

b) The concept of financial intermediation.

c) The liquidity function in banking.

d) Market imperfection theory

e) The efficiency contribution of banking.

3. A bank that wires funds for the purchase of a beach house in South Carolina for a customer in Oklahoma is carrying out which role of the banks.

a) the intermediation role

b) the payment role

c) the guarantor role

d) the agency role

e) the policy role Save

4. A bank which manages the investment portfolio and pays the bills of an elderly lady whi is unable to do it for herself is carryout which of the following roles of the bank?

a) the intermediation role

b) the payment role

c) the guarantor role

d) the agency role

e) the policy role

5.Which of the following is NOT a current trend in the banking industry:

a) the number of banks is declining

b) the number of bank branches is declining

c) the number of bank services is increasing

d) bank industry convergence

e) the number of bank competitors is increasing

6. Which of the following types of banks would most likely offer the largest financial services

a) a Retail Bank

b) a Money-Center Bank

c) a Commercial Bank

d) a Universal Bank

e) an Internal Bank

7. The phenomenon of convergence refers to:

a) financial service firms expanding into other product lines

b) firms reducing their product lines

c) bank merger activity

d) globalization in banking

e)...