商业银行管理彼得S.罗斯英文原书第8版 英语试题库Chap003(12页).doc

-商业银行管理彼得S.罗斯英文原书第8版 英语试题库Chap003-第 37 页Chapter 3The Organization and Structure of Banking and the Financial-Services IndustryFill in the Blank Questions1.A(n) _ is a machine located at the merchant's place of business which allows depositors to use their debit card to pay for purchases directly. Answer: POS 2.A(n) _ is a bank which offers its full range of services from several locations. Answer: branch bank 3.A(n) _ is a bank which offers its full range of services from only one location. Answer: unit bank 4.A(n)_ is a corporation chartered for the express purpose of holding the stock of one or more banks. Answer: Bank Holding Company 5.Managers who value fringe benefits, plush offices and ample travel budgets over the pursuit of maximum returns for stockholders are exhibiting signs of _. Answer: Expense Preference Behavior 6. A(n) _ can invest in corporate stock as sell as loan money to help finance the start of new ventures or support the expansion of existing businesses. Answer: Merchant bank 7.A bank which operates exclusively over the internet is known as a _ bank. Answer: Virtual 8.One new 21st century bank organizational structures is _ . This is a special type of holding company that may offer the broadest range of financial services.Answer: Financial Holding Company (FHC) 9. The key problem in a large money center bank is . Managers may be knowledgeable about banking practices but may be less informed about products and services of subsidiary companies.Answer: span of control10. The Gramm-Leach-Bliley Act moved the U.S. banking industry closer to banking in which banks may provide securities, insurance, and other financial products.Answer: universal11. A bank that is not associated with a bank holding company is called a(n) bank.Answer: independent12. is a view of how modern corporations operate which analyzes the relationship between a firms owners and its managers.Answer: Agency theory13. Many experts believe that , the relationships that exist between managers, the board of directors and stockholders, is more complicated in financial institutions. Answer: Because of government regulations.14. is the idea that there will be a lower cost of production per unit as the firm gets larger.Answer: Economies of scale15. is the idea that there will be lower cost of producing multiple services using the same organization and resources.Answer: Economies of scope16. Over the years, managers of banks and other financial institutions have evolved different organizational forms to address changes in the industry. Indeed, these firms are organized to carry out various roles in the most efficient way. This is referred to as _.Answer: Organizational form follows functionTrue/False QuestionsTF17.Bank size is not considered a significant factor in determining how banks are organized. Answer: False TF18.Nearly three quarters of all U.S. banks exceed $100 million in asset size apiece. Answer: False TF19.Nearly all U.S. banks with federal or state charters have their deposits insured by the Federal Deposit Insurance Corporation. Answer: True TF20.State-chartered banks in the United States represent about a quarter of all U.S.-chartered banks, while national banks account for approximately three quarters of all U.S. chartered banks. Answer: False TF21.The majority of all U.S. banks are members of the Federal Reserve System. Answer: False TF22.A banking corporation chartered by either federal or state governments that operates only one full-service office is called a unit bank. Answer: True TF23.Over half of all U.S. states today limit branching activity.Answer: False TF24.The average U.S. bank is larger in size (in terms of number of branch offices) than the average Canadian bank. Answer: False TF25.Despite the rapid growth of automation in U.S. banking, there are more full-service branch banking offices than automated teller machines across the whole U.S. Answer: False TF26.In the United States there are more one-bank holding companies than multi-bank holding companies. Answer: True TF27.Bank holding companies hold more than 90 percent of the industrys assets in the United States. Answer: True TF28.Research evidence suggests that banks taken over by interstate banking organizations have generally increased their market shares over their competitors within the same state and generally are more profitable than their competitors. Answer: False TF29.The concentration of bank deposits at the local level (that is in urban communities and rural counties) has displayed only moderate changes in recent years. Answer: True TF30.There is evidence that branch banks charge higher fees for some banking services than do unit banks. Answer: True TF31.Branch banks tend to offer a wider menu of services than unit banks. Answer: False TF32.Recent research suggests that branch banks tend to be more profitable than either unit or holding company banks, while interstate banks tend to be the most profitable of all. Answer: False TF33.Less than 10 percent of the largest banks in the U.S. control almost 90 percent of the industry assets. Answer: True TF34.Agency theory suggests that bank management will always pursue the goal of maximizing the return of the bank's shareholders. Answer: False TF35.Recent research suggests that the relationship between bank size and the cost of production per unit is roughly U shaped. Answer: True TF36.Bank holding companies that want to achieve the goal of risk reduction in earnings risk through interstate banking can achieve the same level of risk reduction by entering any of the fifty states. Answer: False TF37.Bank holding companies are allowed to own nonbank businesses as long as those businesses offer services closely related to banking. Answer: True TF38.Banks tend to have a higher proportion of outside directors than a typical manufacturing firm. Answer: True TF39.Banks which operate entirely on the web are known as invisible banks. Answer: False TF40.Banks acquired by holding companies are referred to as affiliated banks. Answer: True TF41.Bank organizational structure has become more complex in recent years. Answer: True TF42.There are only a very small number of unit banks in the U.S. today. Answer: False TF43.Traditional brick-and-mortar bank branch offices are on the decline in the U.S. today. Answer: False TF44.Community banks are usually smaller banks that are devoted principally to the markets for smaller, locally based deposits and loans. Answer: True TF45.The question of whether financial firms operate as efficiently as possible requires researchers to look into the issue of x-efficiency. The concept requires an assessment of the financial firms operating costs in relation to its cost-efficient frontier. Answer: True Multiple Choice Questions46. In banking, organizational form follows _ because banks usually are organized in such a way as to carry out the tasks and supply the services demanded of them. The term that correctly fills in the blank in the sentence above is: A)Bank size B)Management's decision C)Function D)Regulation E)Location Answer: C 47. Which one of the following is charged with setting policy and overseeing a bank's performance? A)Stockholders B)Board of directors C)Regulators D)Depositors E)None of the above. Answer: B 48. The largest banks possess some potential advantages over small and medium-size banks, according to the textbook. What specific advantage of the largest banks over small and medium-sized banks is not mentioned in the text? A)Greater diversification geographically and by product line B)Availability of financial capital at lower cost C)Greater professional expertise to allocate capital to the most promising products and services D)Better positioned to take advantage of the opportunities afforded by interstate banking. E)All of the above were mentioned in the text as advantages typically possessed by the largest banks. Answer: E 49. Before any financial services can be offered to anyone a bank in the United States must have a: A)Certificate of deposit insurance B)Charter of incorporation C)List of established customers D)New building constructed to be the bank's permanent home E)None of the above. Answer: B 50. In the United States there are close to _ commercial banks in operation. Which number shown below is closest to the actual total number of U.S. banks operating in the U.S.? A)20,500 B)13,500 C)11,500 D)9,000 E)7,500 Answer: E 51. One of the few states that has opted out of interstate banking is: A)New York B)Ohio C)Texas D)Montana E)None of the above Answer: D 52. The concentration of U.S. bank deposits in the hands of the largest banks has _ during the most recent period, A)Declined B)Increased C)Remained essentially unchanged D)Exhibited large fluctuations in both directions E)None of above. Answer: B 53. Bank holding company organizations have several advantages over other types of banking organizations. Among the advantages mentioned in this chapter is: A)Greater ease of access to capital markets B)Tax advantageC)Product-line diversification D)All of the above. E)None of the above. Answer: D 54. A company which owns the stock of three different banks is known as a(n): A)Unit Bank B)Interstate Bank C)One Bank Holding Company D)Multi Bank Holding Company E)None of the above Answer: D 55. Which of the following is considered an advantage of branch banking? A)Increased availability and convenience of services B)Decreased chance of failure C)Reduced transaction costs D)B and C above E)All of the above Answer: E 56. The types of nonbank businesses a bank holding company can own include which of the following? A)Retail Computer Store B)Security Brokerage Firm C)Retail Grocery Store D)Wholesale Electronic Distribution Company E)All of the above Answer: B 57. A bank which offers its full range of services from only one office is known as a: A)Unit Bank B)Branch Bank C)Correspondent Bank D)Bank Holding Company E)None of the above Answer: A 58. Why did so many states and the federal government finally enact interstate banking laws? A)The need for new capital in order to revive struggling economies B)The expansion of services by nonbank financial institutions C)Competition from neighboring states that already liberalized their laws D)Advances in technology which allowed banks to service customers in broader geographic areas E)All of the above are reasons for the passage of interstate banking laws Answer: E 59. What is a bank holding company? A)It is a bank that offers all of its services out of one office B)It is a bank that offers all its services out of several offices C)It is a corporation formed to hold the stock of one or more banks D)It is a merchant bank E)None of the above Answer: C 60. Which of the following is a type of service a bank holding company is not allowed to own? A)Merchant banking company B)Savings and loan association C)Retail electronics equipment sales company D)Security brokerage firm E)Insurance agency Answer: C 61. In the last decade, the number of banks has _ and the number of branches has _. A)Declined; Increased B)Grown; Increased C)Grown; Decreased D)Declined; Decreased E)Stabilized; Stabilized Answer: A 62. Websites known as electronic branches offer all of the following except: A)Internet banking services B)ATMs C)Point of sales terminals D)Computer and phone services connecting customers E)Traveler's checks Answer: E 63. Relative to manufacturing firms, banks tend to have a (the) _ number of board members. A)Same B)Larger C)Smaller D)Unknown E)None of the above Answer: B 64. The percentage of unit banks in the U.S. today is approximately: A)10% B)30% C)50% D)75% E)100% Answer: B 65. The typical community bank has:A) $300 million in assets and is located in a smaller city in the Midwest.B) $25 billion in assets and is located in a large city in the EastC) $100 million in assets and is located in a large city the SouthD) $10 billion in assets and is located in a small city in the WestE) None of the aboveAnswer: A66. The typical money center bank has:A) $250 million in assets and is located in a smaller city in the MidwestB) $25 billion in assets and is located in a large city in the EastC) $100 million in assets and is located in a large city in the SouthD) $10 billion in assets and is located in a small city in the WestE) None of the aboveAnswer: B67. The majority of banks today are:A) Federally charteredB) UninsuredC) State CharteredD) National BanksE) All of the aboveAnswer: C68. Member banks are:A) Members of the FDICB) National BanksC) Unit BanksD) Members of the Federal ReserveE) All of the aboveAnswer: D69. and banks tend to be larger and hold more of the publics deposits.A) National and MemberB) State and NonmemberC) National and UninsuredD) State and InsuredE) None of the aboveAnswer: A70. Which of the following is a reason for the rapid growth in branch banks?A) Exodus of population from cities to suburban areasB) Bank convergenceC) Business failuresD) Decreased costs of brick and mortarE) All of the aboveAnswer: A71. Under the Bank Holding Company Act control of a bank is assumed to exist only if:A) The bank holding company acquires 100% of the banks stockB) The bank holding company acquires 50% or more of the banks stock C) The ba