true/false

6. Only a bank that was willing to take on more interest rate risk would trade in derivatives.

7. In the early years of the U.S. most states prohibited branch banking within that state.

8. From the late 1800s and up until the mid-1900s banks were much larger financial institutions than life insurance companies.

9. The process by which depositors remove their funds from financial intermediaries and buy financial instruments directly is known as financial disintermediation.

10. The use of credit cards arose as retailers had a more difficult time identifying their customers and assessing their credit worthiness.

11. In the 1970s commercial banks controlled only about 25% of the loan market (for nonfinancial borrowers) while in recent years this has risen dramatically to about 75%.

12. Bank concentration is much lower in Canada than in the U.S.