1.

Which of the following are considered to be transaction deposits?

I. Checking accounts

II. Savings accounts

III. Certificates of deposit accounts

Select one:

a.

I only

b.

I and II only

c.

I and III only

d.

I, II, and III

2.

Which of the following is false concerning U.S. bank deposits?

I. Banks receiving higher interest on loans than they are paying for deposits have negative interest margins

II. Banks are expected to pay interest on deposits that are not being loaned to borrowers

II. Banks are typically required by law to keep at least 50% of deposits in their bank vaults

Select one:

a.

I. only

b.

I and II only

c.

I and III only

d.

I, II, and III

3.

The U.S. savings-and-loan crisis was primarily the result of:

I. Negative lending spreads due to rising market interest rates

II. Excessive regulation of the savings-and-loan industry

III. Laws preventing savings-and-loans from investing in derivative securities

Select one:

a.

I only

b.

I and II only

c.

I and III only

d.

I, II, and III

4.

How do credit unions differ from commercial banks?

I. Credit unions are not-for-profit and tax-exempt

II. Credit unions cannot make business loans

III. Credit unions have members instead of shareholders

Select one:

a.

I only

b.

I and II only

c.

I and III only

d.

I, II, and III

5.

Which of the following is true regarding bank charters?

I. All U.S. commercial banks must be chartered in order to operate

II. All U.S. national banks are chartered by the Office of the Comptroller of the Currency

III. In most cases, state banks are chartered by the Federal Reserve System

Select one:

A.

I only

B.

I and II only

C.

I and III only

D.

I, II, and III