Question 1

Which of the following is a nonbank thrift?

Accepted Answer

A)  Savings and Loan Association 
B)  Savings Bank 
C)  Credit Union 
D)  Money Markets Fund 
E)  All of the above 
A)  Savings and Loan Association 
B)  Savings Bank 
C)  Credit Union 
D)  Money Markets Fund 
E)  All of the above A

Question 2

Cooperative, self-help associations of individuals are also known as:

Accepted Answer

A)  Money market funds 
B)  Credit unions 
C)  Savings banks 
D)  Investment banks 
E)  None of the above 
A)  Money market funds 
B)  Credit unions 
C)  Savings banks 
D)  Investment banks 
E)  None of the above B

Question 3

Savings and loan associations cannot offer credit cards like commercial banks can do.

Accepted Answer

A) True 
 B)False  False

Question 4

The thrift institutions' principal problem as described in the textbook is:

Accepted Answer

A)  Too many rate sensitivities 
B)  Portfolio maturity mismatch 
C)  Competition 
D)  The rise of credit unions 
E)  None of the above 
A)  Too many rate sensitivities 
B)  Portfolio maturity mismatch 
C)  Competition 
D)  The rise of credit unions 
E)  None of the above

Question 5

Credit unions face increasing demand for loans in such traditional areas as automobile loans.

Accepted Answer

A) True 
 B)False

Question 6

The leading state in terms of the number of savings banks headquartered there is New York.

Accepted Answer

A) True 
 B)False

Question 7

In your textbook, mutual funds that purchase Treasury bills, bank CDs, commercial paper and other short-term securities would be classified as:

Accepted Answer

A)  Contractual institution 
B)  Investment institution 
C)  Security dealers 
D)  Money market funds 
E)  None of the above 
A)  Contractual institution 
B)  Investment institution 
C)  Security dealers 
D)  Money market funds 
E)  None of the above

Question 8

Most of the revenues generated by savings associations are from _______, while most of the expenses are from _______.

Accepted Answer

A)  Loan interest and fees, interest paid on deposits 
B)  Nonmortgage loan interest, interest paid on long-term bonds 
C)  Interest paid on deposits, interest paid on long-term bonds 
D)  Interest on short-term debt, loan interest and fees 
E)  None of the above 
A)  Loan interest and fees, interest paid on deposits 
B)  Nonmortgage loan interest, interest paid on long-term bonds 
C)  Interest paid on deposits, interest paid on long-term bonds 
D)  Interest on short-term debt, loan interest and fees 
E)  None of the above

Question 9

S&Ls are also referred to as:

Accepted Answer

A)  Building and people societies 
B)  Building and loan societies 
C)  Savings banks 
D)  Commercial banks 
E)  None of the above 
A)  Building and people societies 
B)  Building and loan societies 
C)  Savings banks 
D)  Commercial banks 
E)  None of the above

Question 10

The number of U.S. credit unions in operation has been declining since 1969; moreover, the average size credit union has also been declining under the pressure of intense competition from banks and savings and loan associations.

Accepted Answer

A) True 
 B)False

Question 11

Beginning in 1995 savings and loan profits were fully competitive with the profits of commercial banks.

Accepted Answer

A) True 
 B)False

Question 12

For comparison, around 20% of credit unions held more than $1 million in assets in 1970, whereas today the median size credit union falls in the two to 5 million asset size range.

Accepted Answer

A) True 
 B)False

Question 13

A growing proportion of S&L liabilities are rate insensitive, according to the textbook.

Accepted Answer

A) True 
 B)False

Question 14

Credit unions can grant secured loans with maturities out to 30 years.

Accepted Answer

A) True 
 B)False

Question 15

Credit unions account for about what proportion of all consumer loans in the U.S.?

Accepted Answer

A)  One-half 
B)  One-third 
C)  10 percent 
D)  Less than 5 percent 
E)  Less than one percent 
A)  One-half 
B)  One-third 
C)  10 percent 
D)  Less than 5 percent 
E)  Less than one percent

Question 16

If regulators allow insolvent thrift institutions to continue to operate this policy is called regulatory forbearance.

Accepted Answer

A) True 
 B)False

Question 17

The two federal agencies issuing or guaranteeing mortgage-backed securities used as investments and as sources of funds by savings and loan associations are the:

Accepted Answer

A)  Federal Home Loan Bank Board, Federal National Mortgage Association 
B)  Government National Mortgage Corporation, Federal Home Loan Mortgage Corporation 
C)  Federal National Mortgage Association, Federal Home Loan Mortgage Association 
D)  Federal Reserve System, Government National Mortgage Association 
E)  None of the above 
A)  Federal Home Loan Bank Board, Federal National Mortgage Association 
B)  Government National Mortgage Corporation, Federal Home Loan Mortgage Corporation 
C)  Federal National Mortgage Association, Federal Home Loan Mortgage Association 
D)  Federal Reserve System, Government National Mortgage Association 
E)  None of the above

Question 18

Credit unions offer an interest-bearing checking account known as the:

Accepted Answer

A)  Share draft 
B)  NOW account 
C)  ATS 
D)  Money store 
E)  None of the above 
A)  Share draft 
B)  NOW account 
C)  ATS 
D)  Money store 
E)  None of the above

Question 19

Savings banks were begun to meet the financial needs of small savers.

Accepted Answer

A) True 
 B)False

Question 20

Which best describes the traditional view of credit union membership?

Accepted Answer

A)  Members must have a verifiable tie to each other 
B)  Anyone can become a member 
C)  You must work for the same company 
D)  You must live in the same community 
E)  None of the above 
A)  Members must have a verifiable tie to each other 
B)  Anyone can become a member 
C)  You must work for the same company 
D)  You must live in the same community 
E)  None of the above

Exam 15: Comparative Analysis of Financial Institutions and Their Operations

Which of the following is a nonbank thrift?

Cooperative, self-help associations of individuals are also known as:

Savings and loan associations cannot offer credit cards like commercial banks can do.

The thrift institutions' principal problem as described in the textbook is:

Credit unions face increasing demand for loans in such traditional areas as automobile loans.

The leading state in terms of the number of savings banks headquartered there is New York.

In your textbook, mutual funds that purchase Treasury bills, bank CDs, commercial paper and other short-term securities would be classified as:

Most of the revenues generated by savings associations are from _______, while most of the expenses are from _______.

S&Ls are also referred to as:

The number of U.S. credit unions in operation has been declining since 1969; moreover, the average size credit union has also been declining under the pressure of intense competition from banks and savings and loan associations.

Beginning in 1995 savings and loan profits were fully competitive with the profits of commercial banks.

For comparison, around 20% of credit unions held more than $1 million in assets in 1970, whereas today the median size credit union falls in the two to 5 million asset size range.

A growing proportion of S&L liabilities are rate insensitive, according to the textbook.

Credit unions can grant secured loans with maturities out to 30 years.

Credit unions account for about what proportion of all consumer loans in the U.S.?

If regulators allow insolvent thrift institutions to continue to operate this policy is called regulatory forbearance.

The two federal agencies issuing or guaranteeing mortgage-backed securities used as investments and as sources of funds by savings and loan associations are the:

Credit unions offer an interest-bearing checking account known as the:

Savings banks were begun to meet the financial needs of small savers.

Which best describes the traditional view of credit union membership?

Understanding the Financial System and Its Impact on the Economy and Markets

Financial Systems, Monetary Units, and the Role of Money in the Economy

Financial Indices, Market Information, and Economic Data

The Financial Crisis and Its Impact on the Mortgage Market and Economy

Understanding Interest Rates, Savings, and the Wealth Effect

Financial Concepts and Interest Rates

Effects of Inflation and Yield Curves on Stock Prices and Investments

Understanding Risk and Market Factors in Financial Securities

Exploring Financial Markets and Hedging Strategies

Factors Affecting the Volume of CDs

Exploring the Reserve Accounting System, Money Markets, and Financial Instruments

Exploring Central Banks and Their Impact on the Economy and Financial System

Central Banking and Monetary Policy: Exploring Tools and Strategies

Banking and Financial Services: Regulations, Operations, and Trends

Exploring Various Aspects of Pension Funds, Finance Companies, and Insurance Industry

The Impact of Deregulation and Regulation on Financial Institutions and Banking Industry in the United States

Treasury Auctions, Public Debt, and Government Borrowing: Exploring the Us Treasury System

Corporate Bond Pricing, Market Development, and Financing Strategies

The Truth About Regulation Fd and Stock Holdings: Debunking Common Myths in the Financial Market

Flexible Savings Account Options

Mortgage Market and Mortgage Instruments

International Financial Transactions and Balance of Payments

International Banking and Financial Regulations

Exploring the Complexities of Financial Services and Regulation

Filters

Most of the revenues generated by savings associations are from _, while most of the expenses are from _.