FIN 3270 - Exam #4 Review

Which of the following is a strategy used w/hedge funds but usually not available w/mutual fund

Which of the following is NOT a 'pro' of mutual funds?

Which of the following is NOT a possible fee of mutual funds?

Defined contribution pension plans often invest in __________.

Which of the following is NOT a type of investment security on a bank's balance sheet?

With ___ life insurance, it allows the insured to change both the premiums & maturity of contract.

Investment firms that pool money from individuals and/or institutions and invest equity funds in start-up firms

T/F: ETFs may be bought or sold in a brokerage account like trading shares in common stock.

Compared to small banks, large banks have...

_________ are for employees of firms that do not pay taxes.

Types of Mutual funds: Track performance of market index.

T/F: Most actively managed funds outperformed index funds from 2005-2019.

In a ______ IRA you are taxed in the year of contribution and withdrawal is tax free.

Index ETFs have expense ratios that are _____ than those of active ETFs.

Contractual commitment by a bank to loan a client a certain maximum amount at a given interest rate & time

When was the first ETF created on Toronto Stock Exchange?

Investors can ONLY buy new shares in ___ funds at a set date, but can trade in the secondary market

In 2010, which member of the European Union was on the verge of defaulting on its gov. debt?

With ___ life insurance, if insured lives beyond the term of the contract, no benefits are paid.

Loans used to finance a firm's capital needs, equipment purchases, and plant expansion.

T/F: Money market mutual funds offer FDIC deposit insurance coverage

Def: When an employee contributes to a pension fund during employee's working years (often with employer matching):

A problem banks face is the Asset-liability mismatch: ____ term assets and ____-term liabilities.

How are mutual funds usually marked-to-market at the close of the day?

Traditional costs for mutual funds (compared to buying stocks) are ___ since mutual funds can buy & sell in large blocks

Protects against ill health or disability due to accidents.

If a bank is a borrower in a repurchase agreement, the repo is a(n) ______?

Nonprofit depository institution mutually organized and owned by their members.

Which of the following plans doesn't have any employer matching contributions?

When investors buy and sell ETFs, they receive ________________.

Def: Problem that customers who apply for insurance policies are more likely to be those most in need

_____ CDs have a face value less than $100,000.

The difference between lending rate and deposit rate.

Types of Mutual Funds: Government and low risk corporate debt

Investors who can invest in hedge funds:

A savings account with limited check writing features

What is typically used as collateral in a repurchase agreement?

Types of Mutual Funds: Only invest in companies that meet certain criteria.

Key skills in business analytics include:

The FDIC insures deposits up to _______?

The present value of expected future payouts on a life insurance policy.

T/F: Loans and leases typically comprise the largest liability category for a bank.

What is the typical performance fee charged by hedge fund managers?

Which of the following cannot be sold short?

When small banks use larger banks for banking services, such as check clearing.

T/F: ETFs are marked-to-market only at the close of the trading day.

A letter of credit is a contingent _______.

T/F: I am ready to "rock OUt" on this Unit 4 exam

T/F: Regulations require banks to hold a minimum level of equity to act as a buffer against losses.