Question 1

The principal asset held by savings banks is:

Accepted Answer

A)  Corporate bonds 
B)  Corporate stock 
C)  Municipal bonds 
D)  Mortgages 
E)  None of the above 
A)  Corporate bonds 
B)  Corporate stock 
C)  Municipal bonds 
D)  Mortgages 
E)  None of the above

Question 2

Savings and loan associations, especially stockholder S&Ls, rely mainly upon owner's capital to fund the loans they grant.

Accepted Answer

A) True 
 B)False

Question 3

The federal law that set up the SAIF to insure savings and loan deposits was the:

Accepted Answer

A)  Depository Institutions Deregulation and Monetary Control Act 
B)  Garn-St Germain Depository Institutions Act 
C)  Financial Institutions Reform, Recovery and Enforcement Act 
D)  Competitive Equality in Banking Act 
E)  None of the above 
A)  Depository Institutions Deregulation and Monetary Control Act 
B)  Garn-St Germain Depository Institutions Act 
C)  Financial Institutions Reform, Recovery and Enforcement Act 
D)  Competitive Equality in Banking Act 
E)  None of the above

Question 4

Most credit union members work for the same employer or for one of a group of related employers.

Accepted Answer

A) True 
 B)False

Question 5

Under SEC rules no more than 1 percent of a money market funds' total assets can be placed in the securities of a single corporate issuer.

Accepted Answer

A) True 
 B)False

Question 6

The first savings bank in the United States was the Philadelphia Savings Fund Society in 1916.

Accepted Answer

A) True 
 B)False

Question 7

The principal asset held by U.S. savings and loan associations is:

Accepted Answer

A)  Mobile home loans 
B)  Home improvement loans 
C)  Loans on savings accounts 
D)  Residential mortgage loans 
E)  None of the above 
A)  Mobile home loans 
B)  Home improvement loans 
C)  Loans on savings accounts 
D)  Residential mortgage loans 
E)  None of the above

Question 8

Loan sales are a popular funds source for commercial banks today, but not for savings and loan associations.

Accepted Answer

A) True 
 B)False

Question 9

There are about ____ savings banks currently operating in the United States.

Accepted Answer

A)  10,000 
B)  A few thousand 
C)  A few hundred 
D)  Less than fifty 
E)  Less than ten 
A)  10,000 
B)  A few thousand 
C)  A few hundred 
D)  Less than fifty 
E)  Less than ten

Question 10

The first S&L originated in Scotland as a British building society founded on the principle called neighbors helping neighbors in the year:

Accepted Answer

A)  1701 
B)  1810 
C)  1920 
D)  1964 
E)  None of the above 
A)  1701 
B)  1810 
C)  1920 
D)  1964 
E)  None of the above

Question 11

Unlike banks and savings and loans, credit unions have reported no failures in recent years.

Accepted Answer

A) True 
 B)False

Question 12

Money market funds are regulated by the Securities and Exchange Commission in the United States.

Accepted Answer

A) True 
 B)False

Question 13

Savings banks facing severe earnings problems have gotten into these problems due to inflexible asset structures, numerous bad real estate loans and higher deposit costs.

Accepted Answer

A) True 
 B)False

Question 14

Total financial assets for S&Ls plus savings banks in 2008 was just over:

Accepted Answer

A)  $1 trillion 
B)  $1.2 trillion 
C)  $1.5 trillion 
D)  $2.8 trillion 
E)  None of the above 
A)  $1 trillion 
B)  $1.2 trillion 
C)  $1.5 trillion 
D)  $2.8 trillion 
E)  None of the above

Question 15

Most money market funds allow customers to purchase or redeem shares by wire or by telephone.

Accepted Answer

A) True 
 B)False

Question 16

The first US savings-and-loan appeared in the Philadelphia area in 1831.

Accepted Answer

A) True 
 B)False

Question 17

Credit-union members, technically speaking, are creditors, not owners, of a credit union.

Accepted Answer

A) True 
 B)False

Question 18

The first S&L in the United States appeared in the Philadelphia area in the year:

Accepted Answer

A)  1725 
B)  1789 
C)  1816 
D)  1944 
E)  None of the above 
A)  1725 
B)  1789 
C)  1816 
D)  1944 
E)  None of the above

Question 19

In periods of rising interest rates the net interest margin of the savings and loan industry tends to rise.

Accepted Answer

A) True 
 B)False

Question 20

Mortgage credit accounts for about one third of the savings and loan industry's total assets.

Accepted Answer

A) True 
 B)False

Exam 15: Comparative Analysis of Financial Institutions and Their Operations

The principal asset held by savings banks is:

Savings and loan associations, especially stockholder S&Ls, rely mainly upon owner's capital to fund the loans they grant.

The federal law that set up the SAIF to insure savings and loan deposits was the:

Most credit union members work for the same employer or for one of a group of related employers.

Under SEC rules no more than 1 percent of a money market funds' total assets can be placed in the securities of a single corporate issuer.

The first savings bank in the United States was the Philadelphia Savings Fund Society in 1916.

The principal asset held by U.S. savings and loan associations is:

Loan sales are a popular funds source for commercial banks today, but not for savings and loan associations.

There are about ____ savings banks currently operating in the United States.

The first S&L originated in Scotland as a British building society founded on the principle called neighbors helping neighbors in the year:

Unlike banks and savings and loans, credit unions have reported no failures in recent years.

Money market funds are regulated by the Securities and Exchange Commission in the United States.

Savings banks facing severe earnings problems have gotten into these problems due to inflexible asset structures, numerous bad real estate loans and higher deposit costs.

Total financial assets for S&Ls plus savings banks in 2008 was just over:

Most money market funds allow customers to purchase or redeem shares by wire or by telephone.

The first US savings-and-loan appeared in the Philadelphia area in 1831.

Credit-union members, technically speaking, are creditors, not owners, of a credit union.

The first S&L in the United States appeared in the Philadelphia area in the year:

In periods of rising interest rates the net interest margin of the savings and loan industry tends to rise.

Mortgage credit accounts for about one third of the savings and loan industry's total assets.

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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