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Banking Industry

Subject : industries
Instructions:
  • Answer 32 questions in 15 minutes.
  • If you are not ready to take this test, you can study here.
  • Match each statement with the correct term.
  • Don't refresh. All questions and answers are randomly picked and ordered every time you load a test.

This is a study tool. The 3 wrong answers for each question are randomly chosen from answers to other questions. So, you might find at times the answers obvious, but you will see it re-enforces your understanding as you take the test each time.
1. Supervised by Office of Comptroller of the Currency (OCC) in US Treasury department; originally issued banks notes as currency






2. Push banks to local lending; lower costs of risk -liquidity -and info






3. Restricting bank to a single bank (unit banking) -restricting banks to branches within a narrow geographic area (limited branching) -restricting banks to branches within a single state (statewide branching)






4. Restricting banks to branches within a single state






5. Pays off depositors - purchases and assumes control of the bank






6. Account against which checks convertible to currency can be written






7. Germany - France - Luxembourg - Netherlands






8. Total of capital of at least 10% of risk-weighted assets and Tier 1 capital of at least 6% of risk-weighted assets; leverage ratio must exceed 5%






9. Total capital must exceed 6% of total risk-weighted assets adn Tier 1 capital must exceed 3% of total risk-weighted assets; leverage ration must exceed 4%






10. Spreading of bad news about one bank to include other banks






11. Allowed banks to get around branching restrictions even further (80s-90s)






12. When banks can participate in non-financial activities






13. Most savings and loan associations are members of the ________






14. Will reimburse the saver for funds lost






15. Most permanent types of capital (common stockholders' equity) ; help absorb loss






16. Capital to total average assets






17. Made after several bank failures - began insuring deposits up to $2500 - now insures up to $100 - 000 - allows banks to hold less equity capital and earn higher returns FDIC






18. Creation of Federal Reserve System (1913) - Federal Deposit Insurance Corporation (FDIC-1934) - restrictions on bank competition






19. Geographic limitations on banks' ability to open more than one office or branch (no longer exist)






20. Geographic branching restrictions -restrictions on permissible activities of banks






21. Ratios of capital to risk weighted assets






22. Federal gov't guarantee of certain types of bank deposits






23. Repealed Glass- Steagall by allowing ownership of banks by securities and insurance firms and allowed banks to participate in securities - insurance -and real estate






24. Offer some protection against loss but have a limited life and may carry an interest obligation






25. Allowed banks to get around branching restrictions (1950s); large firm with many different banks as subsidiaries






26. Ultimate source of credit to banks for panic waves; illiquid loans become collateral in exchange for the cash needed now;






27. Companies that own more than one bank






28. Banks have less ability to diversify assets; raise exposure to credit risk






29. Restricting bank to a single bank






30. Grade regulators will give after examining a bank






31. Protected small banks from large banks






32. Restricting banks to branches within a narrow geographic area