Question 1

___________________ is the committee selected by stockholders to set policies and monitor the performance of a bank.

Accepted Answer

Board of directors

Question 2

A(n)_____________________ is a special type of holding company that may offer the broadest range of financial services,including dealing in and underwriting securities,and selling and underwriting insurance.

Accepted Answer

Financial Holding Company (FHC

Question 3

___________________ is a larger view of how modern corporations operate,and analyzes the relationship between a firm's owners and its managers.

Accepted Answer

Agency theory

Question 4

A(n)_____________________ is one which offers its full range of banking services from only one location.

Accepted Answer

The answer of A(n)_____________________ is one which offers its full...

Question 5

Of the following countries in Europe,which one has the largest number of banks?

Accepted Answer

A)  Belgium
B)  France
C)  Germany
D)  Great Britain
E)  None of the options are correct

Question 6

About a quarter of all commercial banks in the U.S.are:

Accepted Answer

A)  investment banks
B)  branch banks
C)  unit banks
D)  virtual banks
E)  bank holding companies

Question 7

In recent years,organizational hierarchy in banks is increasingly becoming more:

Accepted Answer

A)  simpler.
B)  complex.
C)  vertical.
D)  horizontal.
E)  flat.

Question 8

________________ manage and care for the property of businesses,individuals,and non-profit organizations.

Accepted Answer

A)  Insurance companies
B)  Holding companies
C)  Real estate companies
D)  Trust companies
E)  Factoring companies

Question 9

A financial holding company (FHC),defined as a special type of holding company that may offer the broadest range of financial services such as securities and insurance activities,was allowed under which act?

Accepted Answer

A)  Riegle-Neal Interstate Banking and Branching Efficiency Act
B)  The Competitive Equality in Banking Act
C)  The Basel Agreement
D)  The FDIC Improvement Act
E)  The Gramm-Leach-Bliley (Financial Services Modernization) Act

Question 10

One reason for the fairly large number of unit banks in the United States is:

Accepted Answer

A)  de-merger of branch banks.
B)  low profitability in larger banks.
C)  continuous formation of new banks.
D)  regulations prohibiting formation of branch banks.
E)  All the options are correct.

Question 11

The Gramm-Leach-Bliley Act moved the U.S.banking industry closer to the concept of ___________ banking in which banks merge with security and insurance firms and various other financial products.

Accepted Answer

The answer of The Gramm-Leach-Bliley Act moved the U.S.banking industry...

Question 12

Banks tend to have a higher proportion of outside directors than a typical manufacturing firm.

Accepted Answer

A) True 
 B)False

Question 13

Managers who value fringe benefits,plush offices,and ample travel budgets over the pursuit of maximum returns for stockholders are exhibiting signs of _________________________.

Accepted Answer

The answer of Managers who value fringe benefits,plush offices,and ample...

Question 14

The concentration of U.S.bank deposits in the hands of the largest banks has _________ recently.

Accepted Answer

A)  declined
B)  increased
C)  remained essentially unchanged
D)  exhibited large fluctuations in both directions
E)  None of the options are correct

Question 15

Bank organizational structure has become more complex in recent years.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following is considered to be an advantage of branch banking?

Accepted Answer

A)  Increased availability and convenience of services
B)  Decreased chance of failure
C)  Reduced transaction costs
D)  Decreased chance of failure and reduced transaction costs
E)  All the options are correct

Question 17

Which of the following is a type of service that a bank holding company is not allowed to own?

Accepted Answer

A)  Merchant banking company
B)  Savings and loan association
C)  Retail electronics equipment sales company
D)  Security brokerage firm
E)  Insurance agency

Question 18

Despite the rapid growth of automation in U.S.banking,there are more full-service branch banking offices than automated teller machines across the whole U.S.

Accepted Answer

A) True 
 B)False

Question 19

The key problem in a large money center bank is ________________.Managers may be knowledgeable about banking practices but may be less informed about products and services of subsidiary companies.

Accepted Answer

The answer of The key problem in a large money...

Question 20

Traditional brick-and-mortar bank branch offices are on the decline in the U.S.today.

Accepted Answer

A) True 
 B)False

Exam 3: The Organization and Structure of Banking and the Financial-Services Industry

___________________ is the committee selected by stockholders to set policies and monitor the performance of a bank.

A(n)_____________________ is a special type of holding company that may offer the broadest range of financial services,including dealing in and underwriting securities,and selling and underwriting insurance.

___________________ is a larger view of how modern corporations operate,and analyzes the relationship between a firm's owners and its managers.

A(n)_____________________ is one which offers its full range of banking services from only one location.

Of the following countries in Europe,which one has the largest number of banks?

About a quarter of all commercial banks in the U.S.are:

In recent years,organizational hierarchy in banks is increasingly becoming more:

________________ manage and care for the property of businesses,individuals,and non-profit organizations.

A financial holding company (FHC) ,defined as a special type of holding company that may offer the broadest range of financial services such as securities and insurance activities,was allowed under which act?

One reason for the fairly large number of unit banks in the United States is:

The Gramm-Leach-Bliley Act moved the U.S.banking industry closer to the concept of ___________ banking in which banks merge with security and insurance firms and various other financial products.

Banks tend to have a higher proportion of outside directors than a typical manufacturing firm.

Managers who value fringe benefits,plush offices,and ample travel budgets over the pursuit of maximum returns for stockholders are exhibiting signs of _________________________.

The concentration of U.S.bank deposits in the hands of the largest banks has _________ recently.

Bank organizational structure has become more complex in recent years.

Which of the following is considered to be an advantage of branch banking?

Which of the following is a type of service that a bank holding company is not allowed to own?

Despite the rapid growth of automation in U.S.banking,there are more full-service branch banking offices than automated teller machines across the whole U.S.

The key problem in a large money center bank is ________________.Managers may be knowledgeable about banking practices but may be less informed about products and services of subsidiary companies.

Traditional brick-and-mortar bank branch offices are on the decline in the U.S.today.