Strayer Fin100 week 3 quiz (100% Answer)
Question 1
1. The holding-company device to control two or more commercial banks:
Answer
has diminished in importance in recent years
has increased in importance in recent years
is limited to state chartered banks
is sometimes described as chain banking
2 points
Question 2
The Federal Deposit Insurance Corporation Improvement Act of 1991:
Answer
transferred the reserves and functions of the Federal Savings and Loan Insurance Corporation to the FDIC
required that failed banks be handled in such a way as to provide the lowest cost to the FDIC
increased federal deposit insurance from $40,000 to $100,000 for each account
extended federal deposit insurance to S&L depositors
2 points
Question 3
The Monetary Control Act:
Answer
extended the Fed’s control to thrift institutions and non-member commercial banks
has resulted in more competition among depository institutions
increased federal deposit insurance from $40,000 to $80,000 for each account
established minimum capital requirements for banks with federal charters
2 points
Question 4
The item on the assets side of a bank’s balance sheet that represents the largest proportion of bank assets is:
Answer
Deposits
owner’s capital
securities
loans
2 points
Question 5
The item on the liabilities and equity section of a bank’s balance sheet that represents the largest proportion of a typical bank’s assets is:
Answer
deposits
owner’s capital
securities
federal funds
2 points
Question 6
The item on the liabilities and equity section of a bank’s balance sheet that represents the smallest proportion of bank’s assets is:
Answer
deposits
owner’s capital
securities
federal funds
2 points
Question 7
An organization that sells or markets new securities issued by businesses to individuals and institutional investors is called a (n)
Answer
mutual fund
investment bank
insurance company
brokerage firm
2 points
Question 8
The primary purpose of this Act was to aid the savings and loan industry
Answer
Garn–St. Germain Depository Institutions Act
Glass-Steagall Act
Hunt Commission legislation
Depository Institutions Deregulation and Monetary Control Act
2 points
Question 9
An organization that sells shares in their firms to individuals and others and invests the proceeds in corporate and government securities is called a (n)
Answer
investment company
investment bank
insurance company
brokerage firm
2 points
Question 10
An organization that received contributions from employees and/or their employers and invests the proceeds on behalf of the employees for use during their retirement years is called a (n)
Answer
mutual fund
savings bank
pension fund
retirement fund
2 points
Question 11
The __________________, passed in 1968, requires the clear explanation of consumer credit costs and garnishment procedures (taking wages or property by legal means) and prohibits overly high-priced credit transactions.
Answer
Consumer Credit Expansion Act
Credit Growth Act
Consumer Credit Protection Act
Consumer Safety Act
2 points
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