322-25

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Author:
SAngell3
ID:
223281
Filename:
322-25
Updated:
2013-06-10 17:45:59
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322 25
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Description:
322-25
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  1. Computers and/or phones with access to the Internet have allowed the almost instantaneous transmission and reception of financial data and information, including the transfer of funds.  

    A) True  
    B) False
    A) True  
  2. The life-cycle hypothesis suggests that, as individuals age, they increase their expectations of lifetime income.  

    A) True  
    B) False
    B) False
  3. Loss of public confidence has the effect of damaging the efficiency of financial market processes.  

    A) True  
    B) False
    A) True  
  4. When a consumer's personal information is stolen and used to access their bank accounts and other assets, it is referred to as "assuming the person's role."  

    A) True  
    B) False
    B) False
  5. In 1999, the U.S. Congress added to restrictions in place since the 1930s which prevented banks and financial-service holding companies the power to combine menus of banking, insurance, securities underwriting services, and real estate brokerage services under the same financial-service organization.  

    A) True  
    B) False
    B) False
  6. The trend toward fewer, but larger, financial firms is called:  

    A) consolidation.  
    B) convergence.  
    C) competition.  
    D) homogenization.  
    E) none of the above
    A) consolidation.  
    (this multiple choice question has been scrambled)
  7. The recent trend toward deregulation of the worldwide financial sector is likely to continue. Governments will be under continuing pressure to:  

    A) amend and relax regulations against product-line and geographic diversification. 
    B) lift or liberalize any restrictions placed on the cost of credit (interest rates) and currency prices.  
    C) establish new regulatory structures.  
    D) A and B only  
    E) none of the above
    C) establish new regulatory structures.
    (this multiple choice question has been scrambled)
  8. Government-sponsored insurance can create which of the following?  

    A) Capital adequacy problem  
    B) Consolidation  
    C) Homogenization  
    D) Moral hazard  
    E) none of the above
    D) Moral hazard
    (this multiple choice question has been scrambled)
  9. Which of the following financial instruments and services appear to have good prospects for rapid market development in the future?  

    A) Loans to remodel residential dwellings, due to the aging of existing homes and greater availability of home equity credit  
    B) Large stock loans  
    C) Credit swaps and other credit risk derivatives, which permit a lending institution to seek protection against loan defaults and depreciation in asset values  
    D) A and C only  
    E) All of the above
    D) A and C only  
    (this multiple choice question has been scrambled)
  10. Market discipline:  

    A) creates a rising cost of capital for riskier firms.  
    B) is a mechanism by which the private marketplace regulates itself.  
    C) tends to be ineffective.  
    D) all of the above  
    E) A and B only  
    F) none of the above
    E) A and B only  

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