Commercial Bank 2

  1. The 1994 law that allowed bank holding companies to acquire banks anywhere in the US is:
    Riegle-Neal Interstate Banking and Branching Efficiency Act
  2. The federal law that allowed the federal reserve to set margine requirements is:
    The Glass Steagall Act
  3. What was the primary purpose of the National Bankign Act?
    Provide support for government activities
  4. What was the primary purpose of the Federal Reserve Act?
    Control the Money Supply
  5. That law that lifted government deposit interest ceilings and allowed them to pay a comptetitive interest rate was:
  6. This law allowed banks to affiliate with insurance companies and security brokerage firms to form financial services conglomerates:
    Gramm Leach Bliley Act (Financial Services Modernization Act)
  7. What was the primary purpose of the Truth and Lending Act?
    Ensuring an adequate and fair supply of loans
  8. This law made bank and nonbank depository institutions more alike in the services they could offer and allowed banks and thrifts to more fully compete with other financial institutions is:
    The Garn-St.Germain Act
  9. This law allowed bank holding companies to acquire nonbank depository institutions and convert them to branches is:
  10. The new financial organization created by Gramm Leach Bliley is the:
    Financial Holding Company
  11. Common minimum capital requirements on banks leading industrialized nations that are based on the riskiness of their assets is imposed by:
    The Basel Agreement
  12. The Federal Agency that regulates the most banks is the:
  13. Which federal banking act requires the Federal Trade Commission to make it easier for victimes of identity theft to make theft reports and requires credit bureaus to help victimes resolve the problem?
    The FACT Act
  14. What is the principal tool of central bank monetary policy today?
    Open Market Operations
  15. If the Federal Reserve buys T-Bills in the open market, this will tend to:
    cause interest rates to fall
  16. What did the Federal Deposit Insurance Reform Act do?
    Increase accounts from $100,000 to $250,000 for insurance purposes and authorized the FDIC to increase deposit insurance to keep up with inflation.
  17. A bank which offers its full range of services from several locations is:
    A branch bank
  18. A bank which offers a full range of services from one location is:
    A unit bank
  19. This is a corporation chartered for the express purpose of holding the stock of one or more banks.
    Bank Holding Company
  20. This type of bank can invest in corporate stock as a way to loan money to help finance the start of new ventures or support the expansion of existing businesses:
    Merchant Bank
  21. A bank which operates exclusively over the internet is known as a ____________ bank?
  22. This is a special type of holding company that may offer the broadest range of financial services:
  23. Gramm Leach Bliley Act moved US banking industry closer to this form of banking, in which banks may provide securities, insurance, and other financial products.
  24. This is a view of how modern corporations operate which analyzes the relationship between a firm's owners and its managers:
    Agency Theory
  25. This is the idea that there will be a lower cost of production per unit as the firm gets larger:
    Economies of Scale
  26. This is the idea that there will be a lower cost of production per unit as the firm gets larger:
    Economies of scale
  27. About how many commercial banks are there in operation?
  28. The concentration of US bank deposits in the hands of the largest banks has (increased/decreased) during the most recent period?
  29. Tax advantage, Product-line diversification, and greater ease of access to capital markets are all examples of advantages which organizations have over other types of banking?
    Bank Holding Company
  30. Which type of nonbank business can a bank holding company own?
    Security Brokerage Firm
  31. What is a corporation that was formed to hold the stock of one or more banks?
    Bank Holding Company
  32. What is the percentage of unit banks in the US today approximately?
  33. A typical community bank has how much in assets?
    $300 million
  34. Are the majority of banks today state chartered or federally chartered?
    State Chartered
  35. A "member" bank is a member of the ?
    Federal Reserve
  36. Which types of banks tend to be larger and hold more of the public's deposits?
    National and Member
  37. Under the Bank Holding Company Act, control of a bank is assumed to exist only if:
    The BHC acquires 25% or more of the bank's stock
  38. If a BHC acquires a nonbank business, it has to approved by:
    The Federal Reserve
  39. When financial service providers offer a range of services including banking, insurance, and securities services it is known as:
  40. Banks with less than $1 billion in assets are generally called this type of bank:
    Community Bank
  41. This organization is defined as a special type of holding company that may offer the broadest range of financial services such as securites and insurance activites:
  42. Which Act created FHCs?
    Gramm-Leach-Bliley Financial Services Modernization Act
  43. A short term collateralized loan that generally consists of T-Bills is:
    Repurchase Agreement
  44. Fed Funds purchased is an example of these type of borrowings?
  45. Short term securities of the bank (t-bills and commercial paper) are often called this type of reserve?
  46. This is a noncash expense on the bank's income statement which allows the bank to account for future bad loans.
    Provision for loan losses
  47. This is the difference between interest income and interest expenses for a financial institution:
    Net Interest Income
  48. This type of deposit account which pays an interest rate competitive with money market mutual funds and which generally has limited check writing ability:
    Money Market Deposit Account
  49. This account is the sum of all outstanding IOU's owed to the bank in the form of consumer, real estate, commercial and agriculture loans:
    Gross Loans
  50. A financial institution often records the value of its assets and liabilities at which value?
    Book Value
  51. The principal types of ______________________ include fee income, income from fiduciary activities and servcies charges on deposits.
    Noninterest Income
  52. This statement shows the amount of revenues received and expenses incurred over a specific time period:
    Report of Income
  53. This statement lists the assets, liabilities and equity capital held by the bank:
    Report of Condition
  54. These are direct and indirect investment in real estate:
  55. These accounts can be held by individuals and nonprofit institutions, bear insterest and permit drafts from being written against the account to pay third parties:
    Now Accounts
  56. Are security gains treated as ordinary income?
  57. Do bad loans normally affect a bank's current income?
  58. Except for banks, savings and loans and savings banks hold the most deposits?
  59. Bank assets fall into which categories:
    Loans, Investment Securities, Noninterest Cash and Due from Banks, and Other Assets
  60. Banks generate their largest portion of income from:
Card Set
Commercial Bank 2
Commercial Bank 2