FIN 3270 - Exam #4 Review

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

What is typically used as collateral in a repurchase agreement?

Protects against ill health or disability due to accidents.

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

Investors who can invest in hedge funds:

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

Key skills in business analytics include:

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

The difference between lending rate and deposit rate.

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

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

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

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

Which of the following cannot be sold short?

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

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

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

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

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

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

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

When investors buy and sell ETFs, they receive ________________.

Types of Mutual funds: Track performance of market index.

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

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

A savings account with limited check writing features

When was the first ETF created on Toronto Stock Exchange?

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

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

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

Defined contribution pension plans often invest in __________.

Nonprofit depository institution mutually organized and owned by their members.

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

The FDIC insures deposits up to _______?

Types of Mutual Funds: Government and low risk corporate debt

Compared to small banks, large banks have...

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

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

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

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

A letter of credit is a contingent _______.

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

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

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.

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

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?

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