FINA 4017 Cap 8,10,11

Suppose you deposit $100 in a bank, which of the following will occur?

An ILC is a type of:

Which of the following ADRs is considered the most risky type of ADR?

An order to buy shares of stock at a specified price or better is called a limit order.

Bank assets tend to have _____________ maturities and _____________ liquidity than/as bank liabilities.

The majority of banks are nationally chartered and insured by the FDIC.

Measured by the amount outstanding, the largest type of derivative market in the world is the:

The proportion of commercial and industrial loans in the banks’ asset portfolio has been declining since 2000.

Small banks control about 70 percent of banking industry assets.

The electronic-based market for less actively traded U.S. securities is the

Two competing fully electronic derivatives markets in the United States are:

With ___voting, all directors up for election are voted on by the shareholders at the same time in one general election.

The type of swap most closely linked to the subprime mortgage crisis is the ____________.

In comparison to small banks, larger banks typically have:

Individuals and households indirectly invest in corporate stock through investments in mutual funds and pension funds.

International stock markets provide the potential of diversification to the investor.

In a bankruptcy situation, the Federal Reserve acts as the liquidator of the bank.

Which of the following information is not usually found in a Wall Street Journal stock quote?

Negotiable certificates of deposit (CDs) do not have an active secondary market.

Since 1980, the number of banks in the US has been increasing dramatically due to deregulation of the industry.

Financial institutions generally do not face liquidity risk.

A clearinghouse backs the buyer's and seller's positions in a forward contract.

Writing a put option results in a potentially limited gain and a potentially unlimited loss.

Loans past due 90 days or more and loans that are not accruing interest because of problems of the borrower are called:

The higher the exercise price, the ________________ the value of a put and the _______________ the value of a call.

An interest rate collar is:

A participating preferred stock has a fixed dividend payment every year.

The largest single type of holder of common stock (by dollar holding) is:

Dual class stock refers to firms with both common and preferred stock outstanding.

American options can only be exercised at maturity.

Nontransaction deposits at banks include NOW accounts and demand deposits.

The market in which firms sell new securities to raise cash is called the secondary market.

Compared to the market order, a limit order may not be executed if the market is moving fast.

Which of the following is true?

Loans comprise the single largest asset category for a bank.

In a futures contract, if funds in the margin acc. fall below the maint. margin requirement, a margin call is issued.

The Dow Jones Industrial Average is a price-weighted index of 30 stocks chosen to represent the overall market.

Futures or option exchange members who take positions on contracts for only a few moments are called scalpers.

European-style options are options that may only be exercised at maturity..

A bank's balance sheet equates the value of total assets to the sum of total liabilities and equity capital.

A seasoned equity offering occurs when an issuer that already has publiclytraded equity issues new shares to the public.

Which of the following could result in a negative NIM?

Banks have an average total debt ratio of about 88.7 percent.True

Of the following, the most recent derivative security innovations are:

On the NASDAQ system, the inside quotes are the:

Forward contracts are marked to market daily.

Advantages of going global for U.S. banks include all but which one of the following?

Preferred stockholders have a claim senior to common stock but junior to bond holders.

In a ____________ the firm preregisters with the SEC any securities it wishes to sell over the next two years.

In terms of profitability, a well-run bank usually has an ROA of:

If the net proceeds are greater than the gross proceeds in an underwritten offering, then:

Commercial banks are the __________________ financial intermediary in the United States as measured by asset size.

A type of absentee ballot that allows a representative to vote on behalf of the stockholder is called a proxy.

Which of the following is the primary regulator of bank holding company activities?

On average, bank liabilities tend to have shorter maturities and greater liquidity than bank assets.

U.S. markets and currencies dominate global derivative securities markets.

The NYSE merged with the London Stock Exchange to form the merged company NYSE Euronext.