Question 1

Bank consolidation is potentially a problem because

Accepted Answer

A)  larger banks are harder to regulate. 
B)  a failure of a large bank has a big effect on the economy. 
C)  both of the above. 
D)  neither of the above. 
A)  larger banks are harder to regulate. 
B)  a failure of a large bank has a big effect on the economy. 
C)  both of the above. 
D)  neither of the above.

Question 2

Bank consolidation is potentially a problem because

Accepted Answer

A)  larger banks tend to be more diversified. 
B)  larger banks tend to take greater risks. 
C)  both of the above. 
D)  neither of the above. 
A)  larger banks tend to be more diversified. 
B)  larger banks tend to take greater risks. 
C)  both of the above. 
D)  neither of the above.

Question 3

Unit banks are banks that operate in only one state.

Accepted Answer

A) True 
 B)False

Question 4

Junk bonds are a financial innovation that took business away from traditional banks.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following is an example of disintermediation?

Accepted Answer

A)  stock market brokers 
B)  insurance companies 
C)  adjustable rate mortgages 
D)  none of the above 
A)  stock market brokers 
B)  insurance companies 
C)  adjustable rate mortgages 
D)  none of the above

Question 6

The Great Inflation eventually led to an increase in bank profits.

Accepted Answer

A) True 
 B)False

Question 7

The number of FDIC commercial banks has steadily increased since World War II.

Accepted Answer

A) True 
 B)False

Question 8

The introduction of mutual funds has made reserve requirements largely ineffective.

Accepted Answer

A) True 
 B)False

Question 9

The Great Inflation affected the banking industry through the following channels.

Accepted Answer

A)  higher nominal interest rates 
B)  decline in deposits 
C)  increase in disintermediated borrowing 
D)  all of the above 
A)  higher nominal interest rates 
B)  decline in deposits 
C)  increase in disintermediated borrowing 
D)  all of the above

Question 10

What is a national bank?

Accepted Answer

A national bank is c

Question 11

Why would larger banks be a problem for regulators?

Accepted Answer

Larger banks might b

Question 12

According to the Herfindahl index, the United States has one of the most concentrated banking industries in the world.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following generate fees for banks?

Accepted Answer

A)  credit cards 
B)  securitized loans 
C)  ATMs 
D)  all of the above 
A)  credit cards 
B)  securitized loans 
C)  ATMs 
D)  all of the above

Question 14

Regulators do not consider a financial institution to be a bank if it does not

Accepted Answer

A)  hold bonds. 
B)  make loans. 
C)  both of the above. 
D)  neither of the above. 
A)  hold bonds. 
B)  make loans. 
C)  both of the above. 
D)  neither of the above.

Question 15

Which of the following changes or innovations depends on computer technology?

Accepted Answer

A)  banker's acceptances 
B)  ATMs 
C)  SWEEP accounts 
D)  all of the above 
A)  banker's acceptances 
B)  ATMs 
C)  SWEEP accounts 
D)  all of the above

Bank consolidation is potentially a problem because

Bank consolidation is potentially a problem because

Unit banks are banks that operate in only one state.

Junk bonds are a financial innovation that took business away from traditional banks.

Which of the following is an example of disintermediation?

The Great Inflation eventually led to an increase in bank profits.

The number of FDIC commercial banks has steadily increased since World War II.

The introduction of mutual funds has made reserve requirements largely ineffective.

The Great Inflation affected the banking industry through the following channels.

What is a national bank?

Why would larger banks be a problem for regulators?

According to the Herfindahl index, the United States has one of the most concentrated banking industries in the world.

Which of the following generate fees for banks?

Regulators do not consider a financial institution to be a bank if it does not

Which of the following changes or innovations depends on computer technology?

The Financial System

Money

Interest Rates

The Economics of Interest-Rate Fluctuations

The Economics of Interest-Rate Spreads and Yield Curves

Rational Expectations, Efficient Markets, and the Valuation of Corporate Equities

Financial Structure, Transaction Costs, and Asymmetric Information

Bank Management

The Economics of Financial Regulation

Financial Derivatives

Financial Crises: Causes and Consequences

Central Bank Form and Function

The Money Supply Process and the Money Multipliers

Monetary Policy Tools

Monetary Policy Targets and Goals

Foreign Exchange

International Monetary Regimes

Money Demand

Is-Lm

Is-Lm in Action

Aggregate Supply and Demand and the Growth Diamond

Monetary Policy Transmission Mechanisms

Inflation and Money

Rational Expectations Redux: Monetary Policy Implications

Filters

Exam 10: Innovation and Structure in Banking and Finance

Bank consolidation is potentially a problem because

Bank consolidation is potentially a problem because

Unit banks are banks that operate in only one state.

Junk bonds are a financial innovation that took business away from traditional banks.

Which of the following is an example of disintermediation?

The Great Inflation eventually led to an increase in bank profits.

The number of FDIC commercial banks has steadily increased since World War II.

The introduction of mutual funds has made reserve requirements largely ineffective.

The Great Inflation affected the banking industry through the following channels.

What is a national bank?

Why would larger banks be a problem for regulators?

According to the Herfindahl index, the United States has one of the most concentrated banking industries in the world.

Which of the following generate fees for banks?

Regulators do not consider a financial institution to be a bank if it does not

Which of the following changes or innovations depends on computer technology?

The Financial System

Money

Interest Rates

The Economics of Interest-Rate Fluctuations

The Economics of Interest-Rate Spreads and Yield Curves

Rational Expectations, Efficient Markets, and the Valuation of Corporate Equities

Financial Structure, Transaction Costs, and Asymmetric Information

Bank Management

The Economics of Financial Regulation

Financial Derivatives

Financial Crises: Causes and Consequences

Central Bank Form and Function

The Money Supply Process and the Money Multipliers

Monetary Policy Tools

Monetary Policy Targets and Goals

Foreign Exchange

International Monetary Regimes

Money Demand

Is-Lm

Is-Lm in Action

Aggregate Supply and Demand and the Growth Diamond

Monetary Policy Transmission Mechanisms

Inflation and Money

Rational Expectations Redux: Monetary Policy Implications

Filters