Term
| In what year was the Bank of North America chartered? |
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Definition
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Term
| In what year was the creation of the Bank of the United States?- this was following the Bank of North America |
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Definition
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Term
| A government institution that has responsibility for the amount of money and credit supplied in the economy as a whole |
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Definition
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Term
| The Bank of North America was headed by whom was was the first ____________ reserve commercial bank in the U.S. |
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Definition
| Robert Morris, fractional |
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Term
| Currency that is circulated by the banks that could be redeemed for gold |
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Definition
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Term
| State-chartered banks are called? |
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Definition
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Term
| Federally chartered banks are called |
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Definition
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Term
| Today, the U.S. had a __________ banking system in which banks supervised by the federal government and banks supervised by the states operate side by side |
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Definition
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Term
| When was the Federal Reserve created? |
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Definition
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Term
| Until 1863, all commercial banks in the U.S. were chartered by the banking commission of where? |
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Definition
| The state in which they operated |
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Term
| How did banks obtain funds since there was no national currency? |
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Definition
| Issuing bank notes- which are currency that is circulating that can be redeemed for gold |
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Term
| The Fed has regulatory responsibility over companies that own one or more banks and secondary responsibility for the national banks |
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Definition
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Term
| Bank lending has been replaced by lending via the securities market |
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Definition
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Term
| What was the Act that prohibited banks from underwriting or dealing in corporate securities? |
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Definition
| The Glass-Steagall Act of 1933 |
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Term
| Who is the primary supervisory responsibility of the National Banks? |
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Definition
| The Office of the Comptroller |
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Term
| Who has control over the state banks? |
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Definition
| The Federal Reserve and the state banking authorities |
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Term
| This has transformed the entire banking industry |
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Definition
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Term
| Financial institutions has to research and develop new products and services that would meet customer needs and be profitable |
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Definition
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Term
| What are the three basic areas of financial innovation? |
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Definition
1. Responses to changes in demand conditions
2. Responses to changes in supply conditions
3. Avoidance of existing regulations |
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Term
| What has been the most significant change in the economic environment that altered the demand for financial products |
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Definition
| Volatility of interest rates |
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Term
| Mortgage loans on which the interest rate changed when the market interest rate changed? |
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Definition
| Adjustable-rate mortgages (ARM) |
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Term
| A seller agrees to provide a certain standardized commodity to the buyer on a specific future date at an agreed-on price |
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Definition
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Term
| A bank that has no physical location but rather exists only in cyberspace; This was first launched in 1995 in Atlanta |
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Definition
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Term
| This is a short term debt security issued by large banks and corporations |
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Definition
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Term
| This has been one of the fastest-growing money market instruments |
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Definition
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Term
| Process of transforming otherwise illiquid financial assets into marketable capital market securities |
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Definition
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Term
| Seeking ways to avoid regulation |
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Definition
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Term
| Two sets of regulations have seriously restricted the ability of banks to make profits: |
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Definition
1. Reserve Requirements
2. Restrictions on interest paid on deposits |
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Term
| Banks are not allowed to pay interest on corporate checking accounts |
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Definition
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Term
| The loss of deposits from the banking system is called?- when people would take their money out of their accounts and put them at another bank so they would yield higher interest rates |
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Definition
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Term
| Who created the first money market mutual fund? |
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Definition
| Bruce Bent and Henry Brown |
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Term
| An innovation that allows banks to avoid reserve requirements- or that allows them to avoid "tax" from reserve requirements |
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Definition
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Term
| T/F: Borrow short and lend long |
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Definition
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Term
| The bank's response in the loss of cost advantages in raising funds and income advantages in making loans has caused a reduction in profitability in traditional banking: 2 reasons |
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Definition
1. Banks have expanded traditional lending into riskier areas
2. Expanded new off-balance-sheet, noninterest income activities |
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Term
| Additional offices for the conduct of banking operations |
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Definition
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Term
| Bank holding companies that have begun to rival the money center banks in size whose headquarters are not in the central city |
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Definition
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Term
| The ability to use one resource to provide many different products/services |
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Definition
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Term
| This was the leading of the development of super-regional banks and what the Federal Reserve calls: |
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Definition
| LCBO's: large, complex banking organizations |
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Term
| The fear of eliminating small banks is also called? |
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Definition
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Term
| Where is the largest volume of assets held overseas? |
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Definition
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| A special subsidiary engaged primarily in international banking |
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Definition
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