Exam 15: Comparative Analysis of Financial Institutions and Their Operations

According to your textbook, the classical model of a savings and loan association cannot survive today's volatile economic environment; some S&Ls have branched out to become mortgage bankers or family financial centers.

The early savings and loans were managed and directed by their depositors with large depositors often having greater influence in the directing of the activities of the association.

Due to their small average size, most credit union deposits are still uninsured.

There is trend in the savings and loan industry away from the stock form of organization towards the mutual form.

Credit unions are allowed to make some loans to business firms.

Worldwide there are over 50,000 credit unions in close to 100 countries with more than 170 million members.

In 1978, Congress authorized the awarding of federal charters for:

One of the following deposits is not offered by savings and loan associations. Which one?

Credit unions are nonprofit associations.

With 50,000 credit unions worldwide, they reside in nearly:

Today, as was true when they began their operations about 25 years ago, money market funds can serve as:

Money market funds are not regulated as to the quality of securities they are permitted to buy.

What services do credit unions offer that compete with the services offered by banks and savings and loan associations?

Today, both the Office of Thrift Supervision (OTS) and the Federal Deposit Insurance Corporation (FDIC) regulate federally-licensed S&Ls.

Savings bank's first appeared in Scotland in 1810 and allowed access to the financial system for low-income savers and borrowers for the first time.

By 2009, money market funds assets in total had climbed to nearly $3.3 trillion.

Credit unions account for about 10 percent of all consumer savings in the United States.

Axtell Credit Union elects to draw upon the following new sources of funds to support the $40 million in new automobile loan requests it is expecting from its customers next week: If only 80 percent of the total of new funds raised will actually be available for making new auto loans, what is the minimum rate of return Axtell must earn in order to at least break even on these new loans?

Savings and loans were also referred to as building and people societies.

In the textbook, a credit union is classified as a: