Exam 21: Product and Geographic Expansion

How could insurance companies get around the restrictive provisions imposed by the bank holding company act of 1956?

Legislations restricting geographic expansion have been undermined in all of the following ways EXCEPT

What is seen as a reason for the increased expansion of foreign bank activities in the United States following the passage of the International Banking Act?

This legislation restricts insurance companies from owning or being affiliated with full service banks.

The Herfindahl-Hirschman Index (HHI)is a measure of

A Eurodollar transaction

Identify the procompetitive effect of banks' expansion of their securities activities.

International expansion often produces revenue-risk diversification benefits for U.S.banks.

The purpose of the Foreign Bank Supervision Enhancement Act of 1991 was to extend federal authority over foreign banking organizations in the U.S.

The emergence of the Euro as a uniform medium of exchange is expected to cause the importance of the dollar to increase among major European countries.

A fully integrated universal bank allows a bank to engage in securities activities only through a separately owned securities affiliate.

The passage of which regulation extended the interstate acquisition powers of banks to encompass healthy thrifts?

Tie-ins and third-party loans are prohibited by current bank regulations.

Economies of scope opportunities seem to be available in the financial services industry,but economies of scale opportunities do not seem to exist.

The use of the Herfindahl-Hirschman Index (HHI)to measure market concentration is encouraged for banks because of the ease of separating banks from thrifts and insurance companies.

Historically,commercial banks have been prohibited from acting as an underwriter of insurance products.

These interstate banking laws allowed an out-of-state bank to acquire an in-state target bank even if the acquirer's home state did not give banks from the target's state similar acquisition powers.

Which of the following is not a feature of the Foreign Bank Supervision Enhancement Act?

Concern about the financial impact of an extension of the federal safety net has been used to justify product segmentation on the grounds of

Increased competition for securities underwritings should reduce the spreads and thus lower the price paid for the securities by the investing public.