Exam 1: An Overview of the Changing Financial-Services Sector

According to the textbook,the largest banks tend to offer the widest range of services of any financial-service firm today.

Convergence refers to the fact that the number of bank mergers has increased in recent years.

_______________________ is a traditional service provided by banks in which the banks store the valuables of their customers and certify their true value.

Major trends affecting the performance of financial firms today include all of these except:

When banks serve as conduits for government policy this is referred to as their agency role.

Banks perform the indispensable task of:

Which of the following reasons leads to an implication that traditional banking is dying?

Which of the following is considered a fringe bank?

Included among leading structural trends in the U.S.banking industry in recent years are:

Jonathan Wynn knows that if he wanted to purchase a Treasury Bill,the minimum amount he would spend would be close to $10,000.He also knows that he could deposit $1,000 in a money market deposit account at a bank and earn about the same rate of interest.Jonathan does not have $10,000 to invest in a Treasury Bill.If Jonathan puts his money in the bank,which service that a bank can provide,is he taking advantage of?

The banking services that include marketing new securities to raise funds for corporations and other institutions is referred to:

The role performed by banks in which they guarantee to make payments on behalf of their customers when those customers are unable to pay a debt obligation is known as the guarantor role.

Banks which supply both debt and equity capital to businesses are known as _________ banks.

The fact that financial institutions monitor the financial condition of their borrowers by serving only as an agent on behalf of depositors is the _______________________ theory of banking.

The loosening of government regulation and control of financial institutions is called ______________________.

Lending institutions act as delegated monitors and can diversify and reduce their risk exposure,resulting in increased safety for savers' funds.

The ___________________________ is a landmark act which allows financial service providers to offer an expanded menu of financial services for the customer.This law allows banks to truly become conglomerate financial service providers.

A(n)________ sells shares mainly to upscale investors in a broad group of different kinds of assets including nontraditional investments in commodities,real estate,loans to new and ailing companies,and other risky assets.

The U.S.government wants to prevent money laundering by drug cartels.To promote this goal,they have asked banks to report any cash deposits greater than $10,000 to the government.Which of the following roles is the bank performing?

The country with the most banks is ______________________.