Q&A Hero

Q: The view that depositors hire banks to analyze the financial condition of prospective borrowers and continually evaluate the condition of outstanding loans is referred to as: A. delegated monitoring. B. the concept of financial intermediation. C. the liquidity function in banking. D. market imperfection theory. E. the efficiency contribution of banking.

Q: Banks perform the indispensable task of: A. creating money without making loans. B. absorbing the excess liquidity created by other financial institutions. C. intermediating between surplus-spending parties and deficit-spending parties. D. issuing risky deposits. E. None of the options are correct

Q: A study of history shows that one of the first services offered by banks was: A. equipment leasing. B. currency exchange. C. security brokerage and underwriting. D. sale of real estate. E. None of the options are correct

Q: J.C. Penney, and Sears provided are among leading firms that in the 1980s organized competitors with banks that are known as: A. nonbank financial-service institutions. B. discount security companies. C. savings institutions. D. credit unions. E. commercial banks.

Q: In the United States, a commercial bank qualifies as a "bank" under federal law if it offers: A. consumer installment loans, CDs. B. trust services, commercial loans. C. checking accounts, commercial loans. D. security investments, inventory loans to business customers. E. commercial deposit accounts, consumer savings plans.

Q: Banks have now expanded their service offerings into providing investment banking, insurance protection, financial planning, and other services rather than restricting themselves to traditional financial services.

Q: Banks which offer virtually all financial services are known as universal banks.

Q: Convergence refers to the fact that the number of bank mergers has increased in recent years.

Q: According to the textbook, traditional banking may be on the decline.

Q: Current theory suggests that banks exist because of imperfections in our financial system.

Q: Lending institutions act as delegated monitors and can diversify and reduce their risk exposure, resulting in increased safety for savers' funds.

Q: The recent erosion of the banking market share relative to other financial institutions means that banking is a dying industry.

Q: A greater proportion of major corporations have deserted the banking system in recent years to raise borrowed funds directly from the open market.

Q: Money-center banks usually service local communities, towns, and cities, offering a narrow menu of services to the public.

Q: The number of independently owned banks has risen in the United States over the last decade.

Q: According to the textbook, high-volume transactions are required to make efficient use of automation and other technological innovations.

Q: When banks serve as conduits for government policy this is referred to as their agency role.

Q: The role performed by banks in which they guarantee to make payments on behalf of their customers when those customers are unable to pay a debt obligation is known as the guarantor role.

Q: The role performed by banks in the economy in which they transform savings into credit is known as the intermediation role.

Q: Managing the financial affairs and property of individuals and business firms falls under the type of banking service line known as cash management services.

Q: According to the delegated monitoring theory, the bank serves as an agent on behalf of its depositors, monitoring the financial condition of those customers who receive loans from them.

Q: According to the textbook, the largest banks tend to offer the widest range of services of any financial-service firm today.

Q: The etymological roots of the word "bank" trace this word back to an Italian term referring to a "money-changer's table".

Q: Nonbank financial-service institutions can offer deposits to the public, but these deposits are not eligible for insurance coverage by the FDIC.

Q: Under U.S. federal law, an institution making only loans to households and offering uninsured checkable deposits and savings deposits qualifies as a commercial bank.

Q: When a bank agrees to handle the cash collections and disbursements for a company and invest any temporary cash surpluses in interest bearing assets, they are providing ________ services to their customers.

Q: A(n) ________ sells shares mainly to upscale investors in a broad group of different kinds of assets including nontraditional investments in commodities, real estate, loans to new and ailing companies, and other risky assets.

Q: A(n) ________ buys and sells securities on behalf of their customers and for their own accounts. Examples of this type of financial service provider include Merrill Lynch and Charles Schwab.

Q: A(n) ________ offers loans to commercial enterprises (such as appliance dealers) and to individuals and families using funds borrowed in the open market or from other financial institutions.

Q: When a local merchant sells the accounts receivables they hold against their customer to a bank this generally known as _______.

Q: A bank that offers its services only over the Internet is known as a(n) _______.

Q: Banks which supply both debt and equity capital to businesses are known as _________ banks.

Q: Banks which function under a federal charter through the Comptroller of the Currency in the United States are known as ____________ banks.

Q: Banks which underwrite issues of new securities on behalf their corporate customers are known as ________ banks.

Q: Banks that sell deposits and make loans to businesses, individuals, and institutions are known as _____________ banks.

Q: Banks which serve primarily households and small firms are known as ____________ banks.

Q: _____________ refers to the movement of businesses across industry lines in order to broaden its base.

Q: A bank which spans regions, nations, and continents, offering the widest menu of financial services is known as a _________ bank.

Q: According to Congress, a ____________ is defined as any institution that can qualify for deposit insurance administered by the FDIC.

Q: The country with the most banks is ______________________.

Q: The ___________________________ is a landmark act which allows financial service providers to offer an expanded menu of financial services for the customer. This law allows banks to truly become conglomerate financial service providers.

Q: ___________________________ is an alternative to lending in which the financial institution purchases the equipment and rents it to its customers.

Q: The loosening of government regulation and control of financial institutions is called ______________________.

Q: Companies such as Merrill Lynch and Sears which offered some but not all banking services in the 1980s were called ______________________.

Q: The _______________________ of a bank is a traditional service where the bank manages the financial affairs and property of individuals (and in some cases businesses).

Q: _______________________ is a service provided by banks where the bank lends money to individuals for the purchase of durable and other goods.

Q: A(n) _______________________ is a traditional service which permits a depositor to write a draft in payment for goods and services.

Q: _______________________ refers to when a financial institution trades one form of currency for another. An example of this would be when the bank trades dollars for yen.

Q: The fact that financial institutions monitor the financial condition of their borrowers by serving only as an agent on behalf of depositors is the _______________________ theory of banking.

Q: _______________________ is a traditional service provided by banks in which the banks store the valuables of their customers and certify their true value.

Q: Why is it important for an employer to follow specific procedures when disciplining an employee?​

Q: Name three examples of gross misconduct that would lead to an employee's immediate dismissal.

Q: ​Under what circumstances would an employee be disciplined with a formal warning?

Q: ​Identify examples of legal regulations that human resources employees should understand.

Q: ​Name five items typically included in an employee's personnel file.

Q: Which bank department is responsible for determining employee compensation? Briefly describe some ways this department establishes pay rates.

Q: Give a brief job description of a banks auditor.

Q: Briefly describe the function of a banks Treasury Management department.

Q: What is an evaluation form?

Q: List in correct order the steps involved in a banks hiring process.

Q: What is telecommuting? Which bank department would be in charge of establishing a policy for telecommuting for employees?

Q: Name two characteristics especially important for bank employees.

Q: Name at least five officers often found in large banks.

Q: Name at least four functional departments often found in a typical bank.

Q: The Party Store is considering accepting credit cards as payment from customers. The credit card companies charge a 3.5% fee on sales. Charge sales for the year are estimated to be $78,000. What would be the actual amount that The Party Store would deposit in its bank account?

Q: Camilla's Beads and Gems deposited $2,304 in its account one week. All of the sales were purchased using a credit card that had a 4% fee. What was the total sales for the week?

Q: The Dream Salon currently does not accept credit cards as payment for the hair and nail services it provides. The salon had $8,000 in sales in June. If the salon had accepted a popular credit card that charged a 5% fee, it would have had $9,000 in sales. How much more would the salon have been able to deposit it if had accepted this card?

Q: Meredith's Catering catered a large party for which the client paid $5,500 with a credit card. If Meredith deposited $5,115 in her bank account from the party, what is the credit card company's fee?

Q: Art's Painting Supplies had $20,000 in sales for the month of December. Its credit card company charged a 4% fee on these sales. What is the fee amount?

Q: Barleys Bakery electronically charged $1,500 of sales transactions. The credit card companies charge the bakery a 5 percent service fee. How much was deposited in Barleys account from these credit card sales?

Q: A verbal or __________ warning is the lowest level of employee discipline; this type of warning is typically given to an employee who commits a minor violation of company policy.

Q: Performance____________________define for both supervisors and employees the expectations for completing a jobs essential functions and tasks.

Q: The____________________process welcomes new employees to the bank and helps them understand its policies and how it operates.

Q: ____________________-based employment involves selecting the person with the best qualifications for a specific position.

Q: A job ____________________is a formal document that identifies a job, its responsibilities, the work involved, and the education required.

Q: The human resources department is sometimes referred to as the ____________________department.

Q: A(n) ____________________ position is the most common one at a bank; these employees are likely to have the most contact with customers.

Q: Bank____________________fulfill the necessary management/oversight function.

Q: ____________________provide operational support to the bank by keeping its financial records, either in books (ledgers) or in computer documents.

Q: The____________________department of a bank provides support services such as bookkeeping and typing.