11. At the end of June 2008, there were approximately ______ FDIC–insured banking organizations in the United States. a.1,400b.3,400c.5,400d.7,400e.9,400Answer: d 12. What is the primary motivation today of forming a financial holding company? 13. Bank holding companies and financial holding companies generally do notpay income tax because:
14. Controlling interest in a bank is defined as ownership or indirect control of ____ of the voting shares in the bank. 15. Today, the primary motivation behind forming a bank holding company is: a.to reduce competition.b.the ability to circumvent restrictions on branching.c.to broaden the scope of products the bank can offer.d.to increase deposit concentration.e.All of the above are motivating factors today for forming a bank holding company.Answer: c 16. __________ control at least two commercial banks. 17. The _________ gave regulatory responsibility over financial holding companies to the Federal Reserve..
18. Many insurance companies have formed __________ to operate banks as part of their financial services efforts. 19. Banks created Section 20 affiliates to: a.engage in investment banking activities.b.make international loans.c.purchase savings and loans.d.invest in junk bonds.e.compete with general-purpose finance companies.Answer: a
- Spring '14
- Federal Reserve, bank holding company