10. Which of the following is typically notoffered on-line by brokerage firms? a.Money market checking accounts.b.Pension fund management.c.Credit cardsd.FDIC-Insured bank accountse.All of the above are typically offered on-line by brokerage firmsAnswer: b 11. Which of the following is not a cost management strategy? 35
12. Banks experience economies of scale when: True/False1. Deposit service charges are a stable source of bank revenue. 2. Banks with the highest efficiency ratios are presumed to be the most efficient. 3. Since the late 1980’s, annual efficiency ratios at commercial banks have fallen. 4. Community banks have the same opportunities to enter investment banking as larger banks. 5. There is no systematic link between a bank’s market value of equity and reported expenses. Essay 1. Discuss why non-interest income has become more important to a bank’s profitability since deregulation in the 1980’s.2. Discuss why the net interest margin for banks has generally been declining for the past several years.3. Discuss how bank’s can reduce the number of unprofitable customers. 36
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- Spring '11
- Interest, Cheque, Non-interest Expense