Question 1

_______________________ refers to when a financial institution trades one form of currency for another.An example of this would be when the bank trades dollars for yen.

Accepted Answer

Currency exchange

Question 2

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.

Accepted Answer

Financial Services Modernization Act (Gramm-Leach-Bliley Act

Question 3

Companies such as Merrill Lynch and Sears which offered some but not all banking services in the 1980s were called ______________________.

Accepted Answer

nonbank financial firms

Question 4

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

Accepted Answer

The answer of The loosening of government regulation and control...

Question 5

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

Accepted Answer

The answer of _______________________ is a traditional service provided by...

Question 6

Banks which function under a federal charter through the Comptroller of the Currency in the United States are known as ____________ banks.

Accepted Answer

The answer of Banks which function under a federal charter...

Question 7

The _______________________ of a bank is a traditional service where the bank manages the financial affairs and property of individuals (and in some cases businesses).

Accepted Answer

The answer of The _______________________ of a bank is a...

Question 8

A bank which spans regions,nations,and continents,offering the widest menu of financial services is known as a _________ bank.

Accepted Answer

The answer of A bank which spans regions,nations,and continents,offering the...

Question 9

A(n)_______________________ is a traditional service which permits a depositor to write a draft in payment for goods and services.

Accepted Answer

The answer of A(n)_______________________ is a traditional service which permits...

Question 10

Banks which serve primarily households and small firms are known as ____________ banks.

Accepted Answer

The answer of Banks which serve primarily households and small...

Question 11

According to Congress,a ____________ is defined as any institution that can qualify for deposit insurance administered by the FDIC.

Accepted Answer

The answer of According to Congress,a ____________ is defined as...

Question 12

The country with the most banks is ______________________.

Accepted Answer

The answer of The country with the most banks is...

Question 13

Banks which underwrite issues of new securities on behalf their corporate customers are known as ________ banks.

Accepted Answer

The answer of Banks which underwrite issues of new securities...

Question 14

A bank that offers its services only over the Internet is known as a(n)_______.

Accepted Answer

The answer of A bank that offers its services only...

Question 15

_____________ refers to the movement of businesses across industry lines in order to broaden its base.

Accepted Answer

The answer of _____________ refers to the movement of businesses...

Question 16

_______________________ is a service provided by banks where the bank lends money to individuals for the purchase of durable and other goods.

Accepted Answer

The answer of _______________________ is a service provided by banks...

Question 17

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.

Accepted Answer

The answer of The fact that financial institutions monitor the...

Question 18

___________________________ is an alternative to lending in which the financial institution purchases the equipment and rents it to its customers.

Accepted Answer

The answer of ___________________________ is an alternative to lending in...

Question 19

Banks that sell deposits and make loans to businesses,individuals,and institutions are known as _____________ banks.

Accepted Answer

The answer of Banks that sell deposits and make loans...

Question 20

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

Accepted Answer

The answer of Banks which supply both debt and equity...

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