Flag question: Question 21

Question 212 pts

Which is not a common reason for bank failures

Declining fee-based services

Lack of liquidity

Loan defaults

fraud

Group of answer choices

Flag question: Question 22

Question 222 pts

What is the biggest asset for savings institutions?

Mortgages

Consumer loans

Investment in bonds

Commercial loans

Group of answer choices

1

Flag question: Question 23

Question 232 pts

Which of the following would generally not increase the cash flows of Savings Institutions?

Increase in economic growth.

Increase in interest rates

Decreased regulation

All of the above

Group of answer choices

Flag question: Question 24

Question 242 pts

Which of the following is not true of credit unions?

Owned by depositors

Nonprofit

Not taxed

Open to the general public

Group of answer choices

Flag question: Question 25

Question 252 pts

Which of the following is not a Thrift Institution?

Savings and loans associations

Commercial banks

Credit unions

Mutual savings banks

Group of answer choices

2
3

Flag question: Question 26

Question 262 pts

What type of company has concentrated on providing loans directly to consumers?

Sales finance companies

Commercial finance companies

Consumer finance companies

Retail finance companies

Group of answer choices

Flag question: Question 27

Question 272 pts

Which of the following is not a typical use of consumer finance company’s funds?

Home improvement loans

Credit card loans

Automobile loans

Primary residential mortgage loans

Group of answer choices

Flag question: Question 28

Question 282 pts

Which of the following is the least likely source of funds for finance companies?

Deposits

Bank loans

Commercial paper

Issuing bond

Group of answer choices

4
Flag question: Question 29

Question 292 pts

Which of the following is the largest risk faced by finance companies?

Liquidity risk

Credit risk

Interest rate risk

Disintermediation risk

Group of answer choices

Flag question: Question 30

Question 302 pts

Which of the following benefits are provided by mutual funds?

Diversification

Lower initial investments for individual investors

Professional portfolio managers

All of the answers are correct

Group of answer choices

1

Flag question: Question 31

Question 312 pts

Which of the following funds would be best for investors who are more concerned with increase in
investment value and not concerned about any income?

Growth funds

Income funds

Index funds

Asset allocation funds

Group of answer choices

Flag question: Question 32

Question 322 pts

Which of the following is not a service provided by investment banking firms?

Assisting firms in issuing new securities.

Forming the underwriting syndicate necessary to distribute securities.

Advising the firm on financing.

Lending new firms money

Group of answer choices

Flag question: Question 33

Question 332 pts

With a _________________ plan, contributions are dictated by the benefits that will eventually be
provided.

Defined-benefit

Defined-contribution

Public pension

Private pension

Group of answer choices

1
2

Flag question: Question 34

Question 342 pts

A __________________ provides benefits that are determined by the accumulated contributions and
the fund’s investment performance.

Defined-benefit

Defined-contribution

Public pension

Private pension

Group of answer choices

Flag question: Question 35

Question 352 pts

________________ sometimes manage pension funds.

Commercial banks

Mutual funds

Brokerage firms

Investment banking firms

Group of answer choices

21. 1

22. 4

23. 4

24. 4

25. 2

26. 3
27. 2

28. 2

29. 2

30. 4

31. 1

32. 4

33. 1

34. 2

35. 1

36/50 score