ch1 - ch1 Key 1. _______________________ is a traditional...

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Unformatted text preview: ch1 Key 1. _______________________ is a traditional service provided by banks in which the banks store the valuables of their customers. Safekeeping of valuables Rose - Chapter 01 #1 2. The fact that financial institutions make loans based on confidential information is the _______________________ theory of banking. delegated monitoring Rose - Chapter 01 #2 3. A(n) _______________________ is an individual, business or government, whose current expenditure exceed their current income. deficit spending unit Rose - Chapter 01 #3 4. A(n) _______________________ is an individual, business or government, whose current expenditures is less than their current income. surplus spending unit Rose - Chapter 01 #4 5. _______________________ 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. Currency exchange Rose - Chapter 01 #5 6. A(n) _______________________ is a traditional service which permits a depositor to write a draft in payment for goods and services. demand deposit (checking account) Rose - Chapter 01 #6 7. _______________________ is a newer service provided by banks where the bank lends money to individuals for the purchase of durable and other goods. Consumer lending Rose - Chapter 01 #7 8. The _______________________ of a bank is a traditional service where the bank manages the financial affairs and property of individuals (and in some cases businesses). trust services Rose - Chapter 01 #8 9. Companies such as Merrill Lynch and Sears which offered some but not all banking services in the 1980s were called _______________________. nonbank banks Rose - Chapter 01 #9 10. The loosening of government regulation and control of financial institutions is called _______________________. deregulation Rose - Chapter 01 #10 11. ___________________________ is an alternative to lending in which the financial institution purchases the equipment and rents it to its customers. Equipment leasing services Rose - Chapter 01 #11 12. The___________________________ is a landmark new act which allows financial service providers to offer an incredible range of new services for the customer. This law allows banks to truly become conglomerate financial service providers. Financial Services Modernization Act (Gramm-Leach-Bliley Act) Rose - Chapter 01 #12 13. The country with the most banks is _______________________. United States Rose - Chapter 01 #13 14. According to Congress a ____________ is defined as any institution that can qualify for deposit insurance administered by the FDIC. Bank Rose - Chapter 01 #14 15. A bank which now offers all of the available financial services is known as a __________ 15....
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This note was uploaded on 10/15/2008 for the course FINA 4443 taught by Professor Mattews during the Fall '08 term at Texas A&M.

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ch1 - ch1 Key 1. _______________________ is a traditional...

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