Test-Bank-for-Bank-Management-8th-Edition.

Test Bank for Bank Management 8th Edition by Timothy W. Koch,
S. Scott MacDonald

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Related Download: Solutions Manual Bank Management 8th Edition by
Koch MacDonald
Chapter 1
Banking and the Financial Services Industry

Multiple Choice

1. Which act separated commercial banking, investment banking and insurance into three
separate industries?
a. Glass-Steagall Act
b. Bank Holding Company Act
c. McFadden Act
d. Federal Reserve Act
e. Competitive Equality Banking Act
Answer: a

2. Which act limited the activities a company could engage in if it owned a bank?
a. Federal Reserve Act
b. Bank Holding Company Act
c. McFadden Act
d. Glass-Steagall Act
e. Competitive Equality Banking Act
Answer: b

3. Which of the following mortgage types were offered to “subprime” borrowers?
a. Interest Only
b. Option Adjustable-Rate
c. Principal Only
d. All of the above
e. a. and b. only
Answer: e

4. The U.S. government took all of the following actions to address the credit crisis in 2008
except:
a. putting Fannie Mae into conservatorship.

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, b. passed the Troubled Asset Relief Program (TARP).
c. created the Keep Banks Solvent (KBS) agency.
d. authorized large non-financial firms to sell bonds that were FDIC-insured.
e. temporarily increased FDIC domestic deposit coverage to $250,000.
Answer: c




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