金融市场与机构Madura第九版题库ch17.doc

Chapter 17 Commercial Bank Operations 1. Which of the following statements is incorrect? A) Banks have expanded their business across services over time. B) Acquisitions have been a convenient method for banks to grow quickly and capitalize on economies of scale. C) The banking industry has become less concentrated in recent years. D) All of the statements above are correct. ANSWER: C 2. Commercial banks have expanded in recent years not only by acquiring other banks but also by acquiring other types of financial service firms. A) True B) False ANSWER: A 3. Commercial banks can be a lender or a borrower when using repurchase agreements and loans in the federal funds market. A) True B) False ANSWER: A 4. The operations, management, and regulation of a financial conglomerate are the same irrespective of the types of services offered. A) True B) False ANSWER: B 5. ______ are offered to bank customers who desire to write checks against their account. A) Time deposit accounts B) CDs C) Demand deposit accounts D) Money market deposit accounts ANSWER: C 6. Which type of savings account transfers funds to a checking account when checks are written? A) ATS B) passbook savings C) CDs D) MMDAs ANSWER: A 7. A(n) __________ account provides checking services as well as interest. A) demand deposit B) negotiable order of withdrawal (NOW) C) passbook savings D) time deposit ANSWER: B 8. Protective covenants impose conditions in which the bank must provide additional loans to a borrower to protect the borrower from going bankrupt. A) true B) false ANSWER: B 9. A ______ is a time deposit offered by some large banks to corporations, with a specific maturity date, minimum deposit of $100,000 or more, and a secondary market. A) retail CD B) negotiable CD C) market CD D) protective CD ANSWER: B 10. A bank’s sources of funds represent liabilities or equity of the bank. A) true B) false ANSWER: A 11. Money market deposit accounts differ