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FIN 366 Final Exam Guide
For more course tutorials visit
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FIN 366 Final Exam Guide
20 Question
Multiple Choice and True/False Type
1. In current years, the number of commercial banks in the U.S. has been rising.
a. True or False
2. Life insurance agencies also administer personal pension plans which
comprise the proposal of guaranteed investment contracts (GICs).
a. True or False
3. Which of the subsequent take place when administrators take on growth-
oriented investments to boost an FI’s size that may be conflicting with stockholders’
value-maximizing objectives?
a. Technology risk
b. Operational efficiency
c. Agency conflicts
d. Diseconomies of scale
e. Diseconomies of scope
4. Which is the fundamental goal of a commercial bank?
a. long-term growth
b. deposit growth
c. bank safety
d. long-term profit maximization
5. Under the Glass-Steagall Act commercial banks were allowed to countersign
and trade Federal government securities and general obligation bonds of states and
municipalities.
a. True or False
6. All of the underneath are the key services of investment banking firms except
a. making commercial loans
b. bringing new security issues to market
c. trading securities
d. brokerage
7. Which of the underneath legislations permitted banks and thrifts to develop
geographically across state lines by obtaining the benefits of unsuccessful thrifts?
a. Bank Holding Company Act
b. McFadden Act
c. Financial Institutions Reform, Recovery, and Enforcement Act
d. Douglas amendment
e. Glass-Steagall Act
8. Savings deposits are a superior percent of financial support for small banks,
compared to large banks.
a. True or False
9. Social Security is a completely funded pension program.
a. True or False
10. Which of the underneath is factual about private placement?
a. The underwriting function is avoided.
b. The extremes of high credit quality firms and low or unknown credit quality
firms use private placements.
c. The terms may be negotiated between the issuer and the investors.
d. The sale of securities must be restricted to a small group of accredited
investors.
e. All of the above is true.
11. Which of the underneath money market rates is calculated intimately for
pointers of alterations in Federal Reserve monetary policy?
a. Federal Funds
b. Treasury bills
c. commercial paper
d. banker's acceptances
12. A Mexican importer of computer parts from Canada would take which
undertaking in the foreign exchange markets?
a. supply Canadian dollars
b. demand pesos
c. demand Canadian dollars
d. demand U.S. dollars
e. none of the above
13. Which of the underneath laws is not connected with U.S. guideline of
international banking?
a. Federal Reserve Act of 1913
b. Edge Act of 1919
c. National Banking Act of 1863
d. International Banking Act of 1978
14. Which of the underneath is not an instance of capital market securities?
a. common stocks
b. convertible bonds
c. commercial paper
d. mortgages
15. A capital market financing is almost certainly to finance
a. new plant and equipment.
b. seasonal inventory needs.
c. a quarterly dividend payment.
d. the sale of common stock.
16. At NYSE, limit orders are generally entered into the specialist’s limit order
book.
a. True or False
17. A publicly traded corporation issuing supplementary shares of common stock
does it through an IPO.
a. True or False
18. A foreign exchange rate are best depicted as
a. the cost of a unit of foreign currency.
b. the current interest rates of varying countries.
c. the cost of a unit of one currency in terms of another currency.
d. the expected change in prices of international goods.
19. Which of the underneath is not a issue connected with international trade not
encountered by domestic traders?
a. One party in the trade has to be concerned about foreign exchange risk.
b. No one legal authority has control over the transaction and legal remedies.
c. Credit information on opposite parties is often incomplete.
d. There is one currency involved.
20. A shortage in the trade equilibrium of payments puts downhill pressure on the
exchange rate.
a. True or False

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Fin 366 final exam guide

  • 1. FIN 366 Final Exam Guide For more course tutorials visit Uophelp is now newtonhelp.com www.newtonhelp.com FIN 366 Final Exam Guide 20 Question Multiple Choice and True/False Type 1. In current years, the number of commercial banks in the U.S. has been rising. a. True or False 2. Life insurance agencies also administer personal pension plans which comprise the proposal of guaranteed investment contracts (GICs). a. True or False 3. Which of the subsequent take place when administrators take on growth- oriented investments to boost an FI’s size that may be conflicting with stockholders’ value-maximizing objectives? a. Technology risk b. Operational efficiency c. Agency conflicts d. Diseconomies of scale e. Diseconomies of scope 4. Which is the fundamental goal of a commercial bank? a. long-term growth
  • 2. b. deposit growth c. bank safety d. long-term profit maximization 5. Under the Glass-Steagall Act commercial banks were allowed to countersign and trade Federal government securities and general obligation bonds of states and municipalities. a. True or False 6. All of the underneath are the key services of investment banking firms except a. making commercial loans b. bringing new security issues to market c. trading securities d. brokerage 7. Which of the underneath legislations permitted banks and thrifts to develop geographically across state lines by obtaining the benefits of unsuccessful thrifts? a. Bank Holding Company Act b. McFadden Act c. Financial Institutions Reform, Recovery, and Enforcement Act d. Douglas amendment e. Glass-Steagall Act 8. Savings deposits are a superior percent of financial support for small banks, compared to large banks.
  • 3. a. True or False 9. Social Security is a completely funded pension program. a. True or False 10. Which of the underneath is factual about private placement? a. The underwriting function is avoided. b. The extremes of high credit quality firms and low or unknown credit quality firms use private placements. c. The terms may be negotiated between the issuer and the investors. d. The sale of securities must be restricted to a small group of accredited investors. e. All of the above is true. 11. Which of the underneath money market rates is calculated intimately for pointers of alterations in Federal Reserve monetary policy? a. Federal Funds b. Treasury bills c. commercial paper d. banker's acceptances 12. A Mexican importer of computer parts from Canada would take which undertaking in the foreign exchange markets? a. supply Canadian dollars b. demand pesos
  • 4. c. demand Canadian dollars d. demand U.S. dollars e. none of the above 13. Which of the underneath laws is not connected with U.S. guideline of international banking? a. Federal Reserve Act of 1913 b. Edge Act of 1919 c. National Banking Act of 1863 d. International Banking Act of 1978 14. Which of the underneath is not an instance of capital market securities? a. common stocks b. convertible bonds c. commercial paper d. mortgages 15. A capital market financing is almost certainly to finance a. new plant and equipment. b. seasonal inventory needs. c. a quarterly dividend payment. d. the sale of common stock. 16. At NYSE, limit orders are generally entered into the specialist’s limit order book.
  • 5. a. True or False 17. A publicly traded corporation issuing supplementary shares of common stock does it through an IPO. a. True or False 18. A foreign exchange rate are best depicted as a. the cost of a unit of foreign currency. b. the current interest rates of varying countries. c. the cost of a unit of one currency in terms of another currency. d. the expected change in prices of international goods. 19. Which of the underneath is not a issue connected with international trade not encountered by domestic traders? a. One party in the trade has to be concerned about foreign exchange risk. b. No one legal authority has control over the transaction and legal remedies. c. Credit information on opposite parties is often incomplete. d. There is one currency involved. 20. A shortage in the trade equilibrium of payments puts downhill pressure on the exchange rate. a. True or False