FIN 366 Final Exam Guide\t20 Question\tMultiple Choice and True\/False Type\t\u00a0\t1. \ufffd\u00a0\u00a0\u00a0 In current years, the number of commercial banks in the U.S. has been rising.\ta. \ufffd\u00a0\u00a0\u00a0 True or False\t\u00a0\t2. \ufffd\u00a0\u00a0\u00a0 Life insurance agencies also administer personal pension plans which comprise the proposal of guaranteed investment contracts (GICs).\ta. \ufffd\u00a0\u00a0\u00a0 True or False\t\u00a0\t3. \ufffd\u00a0\u00a0\u00a0 Which of the subsequent take place when administrators take on growth-oriented investments to boost an FI’s size that may be conflicting with stockholders’ value-maximizing objectives?\ta. \ufffd\u00a0\u00a0\u00a0 Technology risk\tb. \ufffd\u00a0\u00a0\u00a0 Operational efficiency\tc. \ufffd\u00a0\u00a0\u00a0 Agency conflicts\td. \ufffd\u00a0\u00a0\u00a0 Diseconomies of scale\te. \ufffd\u00a0\u00a0\u00a0 Diseconomies of scope\t\u00a0\t4. \ufffd\u00a0\u00a0\u00a0 Which is the fundamental goal of a commercial bank?\ta. \ufffd\u00a0\u00a0\u00a0 long-term growth\tb. \ufffd\u00a0\u00a0\u00a0 deposit growth\tc. \ufffd\u00a0\u00a0\u00a0 bank safety\td. \ufffd\u00a0\u00a0\u00a0 long-term profit maximization\t\u00a0\t5. \ufffd\u00a0\u00a0\u00a0 Under the Glass-Steagall Act commercial banks were allowed to countersign and trade Federal government securities and general obligation bonds of states and municipalities.\ta. \ufffd\u00a0\u00a0\u00a0 True or False\t\u00a0\t\u00a0\t6. \ufffd\u00a0\u00a0\u00a0 All of the underneath are the key services of investment banking firms except\ta. \ufffd\u00a0\u00a0\u00a0 making commercial loans\tb. \ufffd\u00a0\u00a0\u00a0 bringing new security issues to market\tc. \ufffd\u00a0\u00a0\u00a0 trading securities\td. \ufffd\u00a0\u00a0\u00a0 brokerage\t\u00a0\t7. \ufffd\u00a0\u00a0\u00a0 Which of the underneath legislations permitted banks and thrifts to develop geographically across state lines by obtaining the benefits of unsuccessful thrifts?\t\u00a0\ta. \ufffd\u00a0\u00a0\u00a0 Bank Holding Company Act\tb. \ufffd\u00a0\u00a0\u00a0 McFadden Act\tc. \ufffd\u00a0\u00a0\u00a0 Financial Institutions Reform, Recovery, and Enforcement Act\td. \ufffd\u00a0\u00a0\u00a0 Douglas amendment\te. \ufffd\u00a0\u00a0\u00a0 Glass-Steagall Act\t\u00a0\t8. \ufffd\u00a0\u00a0\u00a0 Savings deposits are a superior percent of financial support for small banks, compared to large banks.\ta. \ufffd\u00a0\u00a0\u00a0 True or False\t\u00a0\t9. \ufffd\u00a0\u00a0\u00a0 Social Security is a completely funded pension program.\ta. \ufffd\u00a0\u00a0\u00a0 True or False\t\u00a0\t10. \ufffd\u00a0 Which of the underneath is factual about private placement?\ta. \ufffd\u00a0\u00a0\u00a0 The underwriting function is avoided.\tb. \ufffd\u00a0\u00a0\u00a0 The extremes of high credit quality firms and low or unknown credit quality firms use private placements.\tc. \ufffd\u00a0\u00a0\u00a0 The terms may be negotiated between the issuer and the investors.\td. \ufffd\u00a0\u00a0\u00a0 The sale of securities must be restricted to a small group of accredited investors.\te. \ufffd\u00a0\u00a0\u00a0 All of the above is true.\t\u00a0\t\u00a0\t11. \ufffd\u00a0 Which of the underneath money market rates is calculated intimately for pointers of alterations in Federal Reserve monetary policy?\t\u00a0\ta. \ufffd\u00a0\u00a0\u00a0 Federal Funds\tb. \ufffd\u00a0\u00a0\u00a0 Treasury bills\tc. \ufffd\u00a0\u00a0\u00a0 commercial paper\td. \ufffd\u00a0\u00a0\u00a0 banker’s acceptances\t\u00a0\t12. \ufffd\u00a0 A Mexican importer of computer parts from Canada would take which undertaking in the foreign exchange markets?\ta. \ufffd\u00a0\u00a0\u00a0 supply Canadian dollars\tb. \ufffd\u00a0\u00a0\u00a0 demand pesos\tc. \ufffd\u00a0\u00a0\u00a0 demand Canadian dollars\td. \ufffd\u00a0\u00a0\u00a0 demand U.S. dollars\te. \ufffd\u00a0\u00a0\u00a0 none of the above\t\u00a0\t13. \ufffd\u00a0 Which of the underneath laws is not connected with U.S. guideline of international banking?\ta. \ufffd\u00a0\u00a0\u00a0 Federal Reserve Act of 1913\tb. \ufffd\u00a0\u00a0\u00a0 Edge Act of 1919\tc. \ufffd\u00a0\u00a0\u00a0 National Banking Act of 1863\td. \ufffd\u00a0\u00a0\u00a0 International Banking Act of 1978\t\u00a0\t\u00a0\t14. \ufffd\u00a0 Which of the underneath is not an instance of capital market securities?\ta. \ufffd\u00a0\u00a0\u00a0 common stocks\tb. \ufffd\u00a0\u00a0\u00a0 convertible bonds\tc. \ufffd\u00a0\u00a0\u00a0 commercial paper\td. \ufffd\u00a0\u00a0\u00a0 mortgages\t\u00a0\t15. \ufffd\u00a0 A capital market financing is almost certainly to finance\ta. \ufffd\u00a0\u00a0\u00a0 new plant and equipment.\tb. \ufffd\u00a0\u00a0\u00a0 seasonal inventory needs.\tc. \ufffd\u00a0\u00a0\u00a0 a quarterly dividend payment.\td. \ufffd\u00a0\u00a0\u00a0 the sale of common stock.\t\u00a0\t16. \ufffd\u00a0 At NYSE, limit orders are generally entered into the specialist’s limit order book.\ta. \ufffd\u00a0\u00a0\u00a0 True or False\t\u00a0\t17. \ufffd\u00a0 A publicly traded corporation issuing supplementary shares of common stock does it through an IPO.\ta. \ufffd\u00a0\u00a0\u00a0 True or False\t\u00a0\t18. \ufffd\u00a0 A foreign exchange rate are best depicted as\ta. \ufffd\u00a0\u00a0\u00a0 the cost of a unit of foreign currency.\tb. \ufffd\u00a0\u00a0\u00a0 the current interest rates of varying countries.\tc. \ufffd\u00a0\u00a0\u00a0 the cost of a unit of one currency in terms of another currency.\td. \ufffd\u00a0\u00a0\u00a0 the expected change in prices of international goods.\t\u00a0\t19. \ufffd\u00a0 Which of the underneath is not a issue connected with international trade not encountered by domestic traders?\ta. \ufffd\u00a0\u00a0\u00a0 One party in the trade has to be concerned about foreign exchange risk.\tb. \ufffd\u00a0\u00a0\u00a0 No one legal authority has control over the transaction and legal remedies.\tc. \ufffd\u00a0\u00a0\u00a0 Credit information on opposite parties is often incomplete.\td. \ufffd\u00a0\u00a0\u00a0 There is one currency involved.\t\u00a0\t20. \ufffd\u00a0 A shortage in the trade equilibrium of payments puts downhill pressure on the exchange rate.\ta. \ufffd\u00a0\u00a0\u00a0 True or False<\/p>\n","protected":false},"excerpt":{"rendered":"
FIN 366 Final Exam Guide 20 Question Multiple Choice and True\/False Type \u00a0 1. \ufffd\u00a0\u00a0\u00a0 In current years, the number of commercial banks in the U.S. has been rising. a. \ufffd\u00a0\u00a0\u00a0 True or False \u00a0 2. \ufffd\u00a0\u00a0\u00a0 Life insurance agencies Read More …<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-216469","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/216469","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/comments?post=216469"}],"version-history":[{"count":0,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/216469\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/media?parent=216469"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/categories?post=216469"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/tags?post=216469"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}