{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

ch1 - ch1 Key 1 is a traditional service provided by banks...

Info icon This preview shows pages 1–5. Sign up to view the full content.

View Full Document Right Arrow Icon
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  
Image of page 1

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
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  
Image of page 2
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  
Image of page 3

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
15. A bank which now offers all of the available financial services is known as a __________  bank.  universal   Rose - Chapter 01 #15   16. _____________ refers to the movement of businesses across industry lines in order to broaden its base. 
Image of page 4
Image of page 5
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern