Agency theory suggests that bank management will always pursue the goal of maximizing the return of the

bank's shareholders. Student Response False Score 5/5 :

2.

Correct Answer False

Banks which operate entirely on the web are known as invisible banks. Student Response False Score 5/5 :
3.

There are only a very small number of unit banks in the U.S. today. Student Response False Score 5/5 :
4.

A banking corporation chartered by either federal or state governments that operates only one full-service office is called a unit bank. Student Response True Score 5/5 :

5.

Bank holding companies are allowed to own nonbank businesses as long as those businesses offer services closely related to banking. Student Response True Score 5/5 :
6.

Bank organizational structure has become more complex in recent years. Student Response True Score 5/5 :
7.

Less than 10 percent of the largest banks in the U.S. control almost 90 percent of the industry assets. Student Response True Score 5/5 :
8.

Community banks are usually smaller banks that are devoted principally to the markets for smaller, locally based deposits and loans. Student Response True

Score 5/5 :
9.

A financial holding companies (FHC), defined as a special type of holding company that may offer the broadest range of financial services such as securities and insurance activities, were allowed under which act? Student Response 1. Riegle-Neal Interstate Banking and Branching Efficiency Act 2. The Competitive Equality in Banking Act 3. The Basel Agreement 4. The FDIC Improvement Act 5. The Gramm-Leach-Bliley Financial Services Modernization Act Score:
10.

Correct Answer

0/5

The percentage of unit banks in the U.S. today is approximately: Student Response 1. 10% 2. 33% 3. 50% 4. 75% 5. 100% Score: 5/5
11.

Correct Answer

One of the few states that has opted out of

interstate banking is: Student Response 1. New York 2. Ohio 3. Texas 4. Montana 5. None of the above Score: 5/5
12.

Correct Answer

Bank holding company organizations have several advantages over other types of banking organizations. Among the advantages mentioned in this chapter is: Student Response 1. Greater ease of access to capital markets 2. Tax advantage 3. Product-line diversification 4. All of the above 5. None of the above Score: 5/5
13.

Correct Answer

A bank which offers its full range of services from only one office is known as a: Student Response 1. Unit Bank 2. Branch Bank 3. Correspondent Bank Correct Answer

4. Bank Holding Company 5. None of the above Score: 5/5

14.

In the last decade, the number of banks has __________ and the number of branches has _________. Student Response 1. Declined; Increased 2. Grown; Increased 3. Grown; Decreased 4. Declined; Decreased 5. Stabilized; Stabilized Score: 5/5
15.

Correct Answer

A company which owns the stock of three different banks is known as a(n): Student Response 1. Unit Bank 2. Interstate Bank 3. One Bank Holding Company 4. Multi Bank Holding Company 5. None of the above Score: 0/5
16.

Correct Answer

Member banks are: Student Response Correct Answer

1. Members of the FDIC 2. National Banks 3. Unit Banks 4. Members of the Federal Reserve 5. All of the above Score: 0/5
17.

Under the Bank Holding Company Act control of a bank is assumed to exist only if: Student Response 1. The bank holding company acquires 100% of the banks stock 2. The bank holding company acquires 50% or more of the banks stock 3. The bank holding company acquires 25% or more the banks stock 4. The bank holding company acquires three banks 5. None of the above Score: 5/5
18.

Correct Answer

Which of the following is a type of service a bank holding company is not allowed to own? Student Response 1. Merchant banking company 2. Savings and loan association 3. Retail electronics equipment sales company Correct Answer

4. Security brokerage firm 5. Insurance agency Score: 0/5

19.

When a bank holding company acquires a nonbank business it must be approved by: Student Response 1. The FDIC 2. The Comptroller of the Currency 3. The Federal Reserve 4. The President of the U.S. 5. All of the above Score: 0/5
20.

Correct Answer

________________ and ______________ banks tend to be larger and hold more of the publics deposits. Student Response 1. National and Member 2. State and Nonmember 3. National and Uninsured 4. State and Insured 5. None of the above Score: 5/5 Correct Answer