Chapter 1
An Overview of the Changing Financial-Services Sector
Fill in the Blank Questions
1. _______________________ is a traditional rvice provided by banks in which the banks store the
valuables of their customers and certify their true value.顾顺章之死
Answer: Safekeeping of valuables
2. The fact that financial institutions make loans bad on confidential information is the
_______________________ theory of banking.
Answer: delegated monitoring
3. _______________________ 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 for a fee.
Answer: currency exchange
4.A(n) _______________________ is a traditional rvice which permits a depositor to write a draft
（汇票）in payment for goods and rvices.
Answer: demand deposit (checking account)
5. _______________________ is a rvice provided by banks where the bank lends money to
individuals for the purcha of durable and other goods.
Answer: Consumer lending
小武当6. The _______________________ of a bank is a traditional rvice where the bank manages the
皮皮鲁的作者是谁financial affairs and property of individuals (and in some cas business).
Answer: trust rvices
7. Companies such as Merrill Lynch and Sears which offered some but not all banking rvices in the
1980s were called _______________________.
Answer: nonbank banks
8. The looning of government regulation and control of financial institutions is called
_______________________.张艺兴电脑桌面壁纸
Answer: deregulation
9. ___________________________ is an alternative to lending in which the financial institution
purchas the equipment and rents it to its customers.
Answer: Equipment leasing rvices
10. The___________________________ is a landmark act which allows financial rvice providers to
offer an expanded menu of financial rvices for the customer. This law allows banks to truly become conglomerate financial rvice providers.
Answer: Financial Services Modernization Act (Gramm-Leach-Bliley Act)
11. The country with the most banks is _______________________.
Answer: United States
12. According to Congress a ____________ is defined as any institution that can qualify for deposit
insurance administered by the FDIC.
Answer: Bank
度过
13. A bank which spans regions, nations, and continents, offering the widest menu of financial rvices
is known as a __________bank.
Answer: money-center bank
14. _____________ refers to the movement of business across industry lines in order to broaden its
ba.
世说新语容止
Answer: Convergence
15. Banks which rve primarily houholds and small firms are known as ____________ banks.
Answer: retail
16. Banks that ll deposits and make loans to business and individuals are known as ______banks.
Answer: commercial
老师送什么花17. Banks which underwrite issues of new curities for their corporate customers are known as
________ banks.
Answer: investment
18. Banks which function under a federal charter through the Comptroller (审计署)of the Currency in
the United States are known as ____________ banks.
Answer: National
19. Banks which supply both debt and equity capital to business are known as _________ banks.
Answer: merchant（商人）
20. A bank that offers its rvices only over the internet is known as a(n) .
Answer: virtual bank（虚拟银行）
21.When a local merchant lls the accounts receivables they hold against their customer to a bank this
generally known as .
Answer: discounting commercial notes
22.A(n) offers loans to commercial enterpris (such as appliance dealers)
or to individuals using funds borrowed in the open market or from other financial institutions.
Examples of this type of financial rvice provider include GMAC Financial Services and
Houhold Finance.
Answer: finance company
23.A(n) buys and lls curities on behalf of their customers and for their
own accounts. Examples of this type of financial rvice provider include Merrill Lynch and
Charles Schwab.
Answer: curity broker (or dealer)
24.A(n) lls shares mainly to upscale investors in a broad group
of different kinds of asts including nontraditional investments in commodities, real estate, loans to ailing companies and other risky asts.
Answer: hedge fund
25.When a bank agrees to handle the cash collections and disburments for a company and invest any
temporary cash surplus in interest bearing asts, they are providing rvices to their customers.
Answer: cash management
True/Fal Questions
T F 26. Under U.S. federal law, an institution making only loans to houholds a nd offering uninsured checkable deposits and savings deposits qualifies as a commercial bank.
Answer: Fal
T F 27. Nonbank banks can offer deposits to the public, but the deposits are not eligible（合适的） for insurance coverage by the FDIC.
Answer: Fal
宇宙星空图片T F 28. The etymological roots of the word "bank" trace this word back to an Italian term referring to a "money-changer's table".
Answer: True
T F 29. According to the textbook, banks are tho financial institutions that today offer the widest range of financial rvices of any business firm in the economy.
Answer: True
T F 30. According to the delegated monitoring theory banks are able to attract borrowing customers becau they pledge confidentiality.
Answer: True
T F 31. Managing the financial affairs and property of individuals and business firms falls under the type of banking rvice line known as cash management rvices.
Answer: Fal
T F 32. The role performed by banks in the economy in which they transform savings into credit is known as the intermediation role.
Answer: True
T F 33. The role performed by banks in which they stand behind their customers when tho customers are unable to pay a debt obligation is known as the guarantor role.
Answer: True
T F 34.When banks rve as conduits（中转机构） for government policy this is referred to as their agency role.
Answer: Fal
T F 35. According to the textbook, high-volume banking is required to make efficient u of automation and other technological innovations.
Answer: True
T F 36. The number of independently owned banks has rin in the United States over the last decade.
Answer: Fal
T F 37. Money-center banks usually rvice local communities, towns, and cities, offering a narrow menu of rvices to the public.
Answer: Fal
T F 38. A greater proportion of major corporations have derted the banking system in recent years to rai borrowed funds directly from the open market.
Answer: True
T F 39. The recent erosion of the banking market share relative to other financial institutions means that banking is a dying industry.
Answer: Fal
T F 40. Lending institutions act as delegated monitors and can diversify and reduce their risk exposure, resulting in incread safety for savers’ funds.
Answer: True
T F 41. Current theory suggests that banks exist becau of imperfections in our financial system.
Answer: True
T F 42. Today U.S. banks account for approximately fifty percent of the largest banks in the world.
Answer: Fal
T F 43. According to the textbook, traditional banking may be on the decline.
Answer: True
T F 44. Convergence refers to the fact that the number of bank mergers has incread in recent years.
Answer: Fal
T F 45. Banks which offer virtually all financial rvices are known as universal banks（综合银行）.
Answer: True
T F 46. Life insurance companies, curities firms, and mortgage（抵押） companies all compete with the traditional bank.
Answer: True
