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Question
Mutual fund management companies offering families of funds are attractive to pension-oriented investors becausea. they provide high return, low risk funds.
b. they provide an opportunity to alter the investment portfolio without the paperwork of rolling over the pension monies.
c. they provide significant "load" fees for customers.
d. they are not regulated like most mutual funds are.
Answer
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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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b. FDIC
c. OCC
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a. FDIC
b. Office of Comptroller of Currency
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a. the banks will be upset with FDIC.
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c. the moral hazard associated with deposit insurance is still present.
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If bank managers lobby to maintain America's traditional "dual banking" structure, they:
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c. want the right to fight competition.
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Q:
The presence of moral hazard incentives
a. reduces the need for close regulatory supervision.
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d. increases the role of markets in disciplining excessive risk-taking.
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All of the following are reasons to regulate depository institutions except:
a. To promote safety and soundness.
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Private or state deposit insurance funds have not successfully prevented panic because
a. the size of the funds was more than enough to pay all depositors.
b. they overcharged the institutions on their premiums.
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Moral hazard incentives for undesirable manager behavior may have been created by
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c. regulatory accounting practices, which inflated capital ratios.
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Financial institutions are regulated for the following reason(s):
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In a purchase and assumption of a failed bank, an assuming bank may be required to invest funds for all but one of the following reasons:
a. acquire the sound assets of the failed bank
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Q:
The maximum amount of FDIC deposit insurance per eligible retirement account is
a. $25,000
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Q:
Regulations provide financial institutions certain benefits such as
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Q:
Bank capital is the most reliable cushion that prevents a decline in asset values from threatening the integrity of bank deposits.
Q:
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.
Q:
A "too big to fail" policy encourages small banks to take higher risks.
Q:
The Office of the Comptroller of the Currency (OCC) is the oldest bank regulatory agency.
Q:
A foreign branch office of a U.S. bank is regulated by
a. U.S. bank regulations
b. the host country bank regulation.
c. the FDIC.
d. the SEC.
e. both a and b
Q:
All of the following are techniques reducing credit risk in international lending except
a. foreign government guarantees of loans to private corporations.
b. pooling risk through syndication with other banks.
c. making floating-rate loans as opposed to fixed-rate loans.
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Q:
Which of the following is associated with the currency risk of international lending by a U.S. bank?
a. The Spanish borrower is slow to pay the U.S. bank.
b. The U.S. bank is paid dollars by its foreign borrowers.
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International bank lending is characterized by all of the following except that loans
a. are unsecured.
b. have floating rates.
c. are made for relatively small amounts.
d. are priced relative to the LIBOR.
Q:
Which of the following forms of international banking organization was intended to bring offshore, shell banking back to the U. S.?
a. Edge Act banks
b. correspondent bank
c. international banking facility
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Q:
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
a. allow international banks to branch throughout every country involved.
b. stabilize interest rates.
c. establish minimum capital ratios for international banks.
d. maintain fixed exchange rates.
Q:
Most large international loans are funded in the Eurocurrency market.
Q:
If a hedge fund manager focused on short-selling of stocks, he/she would
a. invest in company stock for short-term profits.
b. invest in companies with high future growth prospects.
c. borrow money to invest in stocks.
d. select companies where the future supply of securities might exceed demand.
Q:
Which of the following is not the difference between hedge funds and mutual funds?
a. Mutual funds are registered with the SEC, while hedge funds are not.
b. Unlike mutual funds, hedge funds borrow significant amounts of their capital.
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Q:
Hedge funds would provide investor portfolio diversification benefits if:
a. the correlation of returns from the hedge fund and the investor's portfolio is close to +1.
b. the hedge fund and the portfolio are investing in the same things.
c. the correlation of returns from the hedge fund and the investor's portfolio is negative.
d. the hedge fund portfolio includes none of the investments of the investor's portfolio.
Q:
Which of the following mutual fund types is likely to have the highest risk exposure?
a. growth and income funds
b. aggressive growth funds
c. balanced funds
d. income-equity funds
e. money market funds
Q:
Mutual fund managers can keep their cash balances low by all but one of the following:
a. maintaining lines of credit at commercial banks
b. increasing redemption fees
c. working to maintain low NAV
d. redeeming shares with stock