A The government does not regulate Internet banks B Traditional banks are

A the government does not regulate internet banks b

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A) The government does not regulate Internet banks. B) Traditional banks are prohibited from having ATMs. C) Internet banks have lower overhead costs. D) Traditional banks offer less personal care and attention to customers. Answer: C LG: 6/LL: 1 Page: 561 20-324. The dissatisfaction of Internet bank customers stems from: A) the government’s failure to regulate Internet banks. B) their desire for more personal service. Nickels, McHugh & McHugh, Understanding Business, Eighth Edition 61
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C) the higher fees charged by Internet banks. D) their need for a convenient way to access their accounts. Answer: B LG: 6/LL: 1 Page: 561 20-325. A(n) __________ allows money to be exchanged electronically more quickly and more economically than with paper checks. A) electronic check conversion (ECC) B) electronic funds transfer system C) virtual banking operation D) telechecking system Answer: B LG: 6/LL: 1 Page: 561 20-326. __________ converts a traditional paper check into an electronic transaction at the cash register and processes it through the Federal Reserve's check clearing system. A) Electronic check conversion B) E-transfer processing C) Electronic funds transfer system D) Telecheck transmission Answer: A LG: 6/LL: 1 Page: 561 20-327. ___________ replace the typical magnetic strip on a credit or debit card with a microprocessor. A) Smart cards B) Direct deposit cards C) E-cards D) Check conversions Answer: A LG: 6/LL: 1 Page: 562 20-328. Which of the following can include an embedded radio-frequency antennae that allows the holder to access secure areas in buildings or buy gas with the swipe of a card? A) smart cards B) direct deposit cards C) e-cards D) check conversion cards Answer: A LG: 6/LL: 1 Page: 562 Level of Learning 2 (Understands concepts and principles) 20-329. A likely result of legislation that allows banks, insurance companies, and securities brokers to combine and compete with one another is: A) deteriorating customer service. B) higher prices for financial services. 62 Nickels, McHugh & McHugh, Understanding Business, Eighth Edition
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C) higher levels of customer service. D) a decrease in the electronic transfer of funds. Answer: C LG: 6/LL: 2 Page: 560 Rationale: As more competition develops in the market for financial services, the provided levels of customer service should increase. 20-330. On payday, some employers order their banks to electronically transfer funds from the business' checking account to the employees' checking account. This represents an example of a(n): A) debit card system. B) check kiting system. C) electronic check conversion. D) direct deposit. Answer: D LG: 6/LL: 2 Page: 562 – 563 Rationale: A direct deposit is part of an electronic funds transfer system where checks are eliminated. 20-331. Retailers prefer the electronic check conversion system because: A) they earn a higher rate of interest at Internet banks. B) they can charge higher prices for their goods and services.
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  • Spring '13
  • Mohammad
  • Monetary Policy, Federal Reserve System, LG

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