Question 1

In 1970 the largest 20% of the credit unions held assets of more than:

Accepted Answer

A)  $10 million 
B)  $5 million 
C)  $3 million 
D)  $1 million 
E)  None of the above 
A)  $10 million 
B)  $5 million 
C)  $3 million 
D)  $1 million 
E)  None of the above

Question 2

The most important loan (in terms of volume) made by credit unions is the loan to finance the purchase of a new business facility.

Accepted Answer

A) True 
 B)False

Question 3

Recently, S&Ls have focused on increasing fee income by:

Accepted Answer

A)  Selling property & casualty insurance 
B)  Renting out unused bank branches 
C)  Servicing mortgages and issuing credit cards 
D)  Issuing stock 
A)  Selling property & casualty insurance 
B)  Renting out unused bank branches 
C)  Servicing mortgages and issuing credit cards 
D)  Issuing stock

Question 4

Recently, many commercial banks have converted to thrift or credit union status in order to offer a wider range of financial services.

Accepted Answer

A) True 
 B)False

Question 5

Money market funds got their start after federal interest rate ceilings were lifted and the funds' share accounts became more attractive.

Accepted Answer

A) True 
 B)False

Question 6

Persons who borrow money from a savings and loan association must also save there.

Accepted Answer

A) True 
 B)False

Question 7

Today, the primary supervisor of federally chartered savings and loan associations is the:

Accepted Answer

A)  Office of Thrift Supervision 
B)  Comptroller of the Currency 
C)  Federal Deposit Insurance Corporation 
D)  Federal National Mortgage Association 
E)  Federal Home Loan Bank Board 
A)  Office of Thrift Supervision 
B)  Comptroller of the Currency 
C)  Federal Deposit Insurance Corporation 
D)  Federal National Mortgage Association 
E)  Federal Home Loan Bank Board

Question 8

The Savings Association Insurance Fund (SAIF) is managed by the FDIC.

Accepted Answer

A) True 
 B)False

Question 9

Unlike other depository institutions new savings banks can be chartered only by the states, not by the federal government.

Accepted Answer

A) True 
 B)False

Question 10

A 1991 ruling of the Securities and Exchange Commission (SEC) requires that money market funds acquire lower-quality securities only up to ____ percent of their assets.

Accepted Answer

A)  5 
B)  10 
C)  15 
D)  20 
E)  None of the above 
A)  5 
B)  10 
C)  15 
D)  20 
E)  None of the above

Question 11

The majority of these financial institutions are classified as "no load;" the financial institutions described must be:

Accepted Answer

A)  Commercial banks 
B)  Savings and loans 
C)  Money market funds 
D)  Pension funds 
E)  None of the above 
A)  Commercial banks 
B)  Savings and loans 
C)  Money market funds 
D)  Pension funds 
E)  None of the above

Question 12

On average, the equity capital of an S&L makes up only about 3 to 4 percent of its total funds sources.

Accepted Answer

A) True 
 B)False

Question 13

The first savings at a law is originated in the 18th century is reddish and building societies founded on the principle called neighbors helping neighbors.

Accepted Answer

A) True 
 B)False

Question 14

Only qualified members can borrow from a credit union or open a share deposit account there.

Accepted Answer

A) True 
 B)False

Question 15

Thrift institutions today are not making widespread use of securitized assets.

Accepted Answer

A) True 
 B)False

Question 16

One important financial intermediary is classified as a nonprofit association. This intermediary is the:

Accepted Answer

A)  Commercial bank 
B)  Savings and loan association 
C)  Savings bank 
D)  Credit union 
E)  None of the above 
A)  Commercial bank 
B)  Savings and loan association 
C)  Savings bank 
D)  Credit union 
E)  None of the above

Question 17

Credit unions can make unsecured loans and credit-card loans up to five years in maturity.

Accepted Answer

A) True 
 B)False

Question 18

Credit unions:

Accepted Answer

A)  Face growing demand for their traditional products, especially automobile loans 
B)  Have become more popular as the population in the U.S. has aged 
C)  Have had to offer nontraditional loans, such as home equity loans, to compensate for the declining demand for automobile loans 
D)  Have become less competitive since passage of banking legislation in the 1980s 
E)  None of the above 
A)  Face growing demand for their traditional products, especially automobile loans 
B)  Have become more popular as the population in the U.S. has aged 
C)  Have had to offer nontraditional loans, such as home equity loans, to compensate for the declining demand for automobile loans 
D)  Have become less competitive since passage of banking legislation in the 1980s 
E)  None of the above

Question 19

The development of Super NOWs and MMDAs helped money market funds to grow faster in the 1980s than they did during the 1970s.

Accepted Answer

A) True 
 B)False

Question 20

The Savings & Loan "debacle" of the last decade or so was precipitated by:

Accepted Answer

A)  Bad loans and bad investments 
B)  Negative net interest margins caused by high(er) floating rate debt 
C)  Overvalued real estate markets 
D)  None of the above 
E)  All of the above 
A)  Bad loans and bad investments 
B)  Negative net interest margins caused by high(er) floating rate debt 
C)  Overvalued real estate markets 
D)  None of the above 
E)  All of the above

Exam 15: Comparative Analysis of Financial Institutions and Their Operations

In 1970 the largest 20% of the credit unions held assets of more than:

The most important loan (in terms of volume) made by credit unions is the loan to finance the purchase of a new business facility.

Recently, S&Ls have focused on increasing fee income by:

Recently, many commercial banks have converted to thrift or credit union status in order to offer a wider range of financial services.

Money market funds got their start after federal interest rate ceilings were lifted and the funds' share accounts became more attractive.

Persons who borrow money from a savings and loan association must also save there.

Today, the primary supervisor of federally chartered savings and loan associations is the:

The Savings Association Insurance Fund (SAIF) is managed by the FDIC.

Unlike other depository institutions new savings banks can be chartered only by the states, not by the federal government.

A 1991 ruling of the Securities and Exchange Commission (SEC) requires that money market funds acquire lower-quality securities only up to ____ percent of their assets.

The majority of these financial institutions are classified as "no load;" the financial institutions described must be:

On average, the equity capital of an S&L makes up only about 3 to 4 percent of its total funds sources.

The first savings at a law is originated in the 18th century is reddish and building societies founded on the principle called neighbors helping neighbors.

Only qualified members can borrow from a credit union or open a share deposit account there.

Thrift institutions today are not making widespread use of securitized assets.

One important financial intermediary is classified as a nonprofit association. This intermediary is the:

Credit unions can make unsecured loans and credit-card loans up to five years in maturity.

Credit unions:

The development of Super NOWs and MMDAs helped money market funds to grow faster in the 1980s than they did during the 1970s.

The Savings & Loan "debacle" of the last decade or so was precipitated by:

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

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