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Question
Match the financial institutions with the characteristic that best describes its function.I. Pool funds of small savers and invest in either money or capital markets
II. Provide economic protection from adverse events
III. Provide consumer loans and real estate loans funded by deposits
IV. Underwrite and trade securities and provide brokerage services
V. Accumulate and transfer wealth from work period to retirement period
1.Credit unions
2.Insurance companies
3.Pension funds
4.Securities firms and investment banks
5.Mutual funds
a. 1, 3, 2, 5, 4
b. 4, 2, 3, 5, 1
c. 5, 2, 1, 4, 3
d. 2, 4, 5, 3, 1
e. 5, 1, 3, 2, 4
Answer
This answer is hidden. It contains 3 characters.
Related questions
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In recent years, know-your-clients (KYC) is required by international financial regulators. In the U.S., what is the act that requires financial institutions to share information about customer identities with appropriate government agencies?
a. The USA Patriot Act
b. The Sarbanes-Oxley Act
c. The 9/11 Act
d. The U.S. Treasury Department Act
e. The Gramm-Leach-Bliley Act
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A state-chartered bank which is not a member of the Federal Reserve System will
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c. OCC
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a. FDIC
b. Office of Comptroller of Currency
c. Office of Thrift Supervision
d. Federal Reserve System
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If FDIC tends to charge depository institutions less than the full cost of deposit insurance in its risk-based deposit premium system,
a. the banks will be upset with FDIC.
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If bank managers lobby to maintain America's traditional "dual banking" structure, they:
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Q:
The presence of moral hazard incentives
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Financial institutions are regulated for the following reason(s):
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Bank capital is the most reliable cushion that prevents a decline in asset values from threatening the integrity of bank deposits.
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Bailout of large banks by federal regulators is an example of market discipline.
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Banks are regulated in part to protect the nation's money supply, much of which is a liability of the banking industry.
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A "too big to fail" policy encourages small banks to take higher risks.
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The Office of the Comptroller of the Currency (OCC) is the oldest bank regulatory agency.
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A foreign branch office of a U.S. bank is regulated by
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b. the host country bank regulation.
c. the FDIC.
d. the SEC.
e. both a and b
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While country central banks have pursued their own country interests, recently under the framework of the Bank for International Settlements, central banks from leading economies have agreed to
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c. establish minimum capital ratios for international banks.
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Most large international loans are funded in the Eurocurrency market.
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If a hedge fund manager focused on short-selling of stocks, he/she would
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Which of the following is not the difference between hedge funds and mutual funds?
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Which of the following mutual fund types is likely to have the highest risk exposure?
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Mutual fund managers can keep their cash balances low by all but one of the following:
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