7.Historically, why have banks been among the safest businesses? a.Banks invest heavily in risk management technologies. b.Banking is one of the most regulated businesses. c.The government has never allowed a bank to fail. d.The products of a bank, loans and deposits, are always in strong demand. e.Banking has traditionally employed conservative risk-averse managers. Answer: b 8.Regulatory dialecticcan be described as: 9.General purpose finance companies often make all of the following types of loans except: 10.The payment method with the smallest transaction size is: 11.Why do banks consider investment banking so attractive? a.Investment banks already provide banking services to prime commercial customers. b.Investment banks can compete in any geographic location without regulation. c.Commercial bank returns are negatively correlated with investment bank returns. d.Investment banks have a higher return on assets than commercial banks. e.All of the above. Answer: e
12.Which of the following is nota function of investment banking? 13.Which of the following is incorrect about Australian banking? 14.Securitization is the process of: Analyzing Bank Performance
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