Question 1

Adjustable rate mortgages are a financial innovation appearing in the 1990s.

Accepted Answer

A) True 
 B)False

Question 2

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

Accepted Answer

A) True 
 B)False

Question 3

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

Question 4

One of the 3s in the 3-6-3 rule refers to the interest rate on assets.

Accepted Answer

A) True 
 B)False

Question 5

Commercial banks are the only institutions in the United States that take transactions deposits.

Accepted Answer

A) True 
 B)False

Question 6

The increase in nominal interest rates during the 1970s led to an increase in the size of the traditional banking industry.

Accepted Answer

A) True 
 B)False

Question 7

SWEEP accounts allow deposit rate to adjust with market rates.

Accepted Answer

A) True 
 B)False

Question 8

The biggest reason for the consolidation of the banking industry in the 1980s was

Accepted Answer

A)  mergers. 
B)  bankruptcy. 
C)  bailouts. 
D)  all of the above. 
A)  mergers. 
B)  bankruptcy. 
C)  bailouts. 
D)  all of the above.

Question 9

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

Accepted Answer

A) True 
 B)False

Question 10

Unit banks

Accepted Answer

A)  have no branches. 
B)  are highly competitive. 
C)  are an increasingly common type of financial institution. 
D)  all of the above. 
A)  have no branches. 
B)  are highly competitive. 
C)  are an increasingly common type of financial institution. 
D)  all of the above.

Question 11

ARMs allow lenders to pass the default risk on to the borrower.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following generate fees for banks?

Accepted Answer

A)  credit cards 
B)  securitized loans 
C)  reserves 
D)  none of the above 
A)  credit cards 
B)  securitized loans 
C)  reserves 
D)  none of the above

Question 13

Why is it easier for financial innovation in a permissive regulatory system?

Accepted Answer

Permissive regulatory systems

Question 14

Explain how the combination of Regulation Q and the high inflation of the 1970s led to an increase in the use of mutual funds and junk bonds.

Accepted Answer

High inflation pushed up nominal rates a

Question 15

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

Adjustable rate mortgages are a financial innovation appearing in the 1990s.

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

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

One of the 3s in the 3-6-3 rule refers to the interest rate on assets.

Commercial banks are the only institutions in the United States that take transactions deposits.

The increase in nominal interest rates during the 1970s led to an increase in the size of the traditional banking industry.

SWEEP accounts allow deposit rate to adjust with market rates.

The biggest reason for the consolidation of the banking industry in the 1980s was

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

Unit banks

ARMs allow lenders to pass the default risk on to the borrower.

Which of the following generate fees for banks?

Why is it easier for financial innovation in a permissive regulatory system?

Explain how the combination of Regulation Q and the high inflation of the 1970s led to an increase in the use of mutual funds and junk bonds.

Which of the following generate fees for banks?

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

Adjustable rate mortgages are a financial innovation appearing in the 1990s.

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

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

One of the 3s in the 3-6-3 rule refers to the interest rate on assets.

Commercial banks are the only institutions in the United States that take transactions deposits.

The increase in nominal interest rates during the 1970s led to an increase in the size of the traditional banking industry.

SWEEP accounts allow deposit rate to adjust with market rates.

The biggest reason for the consolidation of the banking industry in the 1980s was

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

Unit banks

ARMs allow lenders to pass the default risk on to the borrower.

Which of the following generate fees for banks?

Why is it easier for financial innovation in a permissive regulatory system?

Explain how the combination of Regulation Q and the high inflation of the 1970s led to an increase in the use of mutual funds and junk bonds.

Which of the following generate fees for banks?

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