FIN 3080 Final Exam Correct 100%

Mutual funds use economies of scale to lower trading costs and reduce administrative expenses. In doing so, they are providing which type of benefit - ANSWER Transaction Cost Services Which is an example of maturity intermediation? - ANSWER A commercial bank allows depositors to withdraw funds anytime, and makes long-term loans. Funds would not flow as freely in a world with no financial institutions as they would in a world with financial institutions. What are the three reasons for this? I. The need to monitor II. The need for liquidity III. Credit allocation IV. Intergenerational wealth transfer V. Price risk - ANSWER I., II., and V. Which of the following types of institutions accepts deposits? - ANSWER Thrifts Which is not one of the factors that affects growth in foreign financial markets? - ANSWER Increased regulation in many foreign countries Of the 5 largest banks in the world, ranked by total assets, how many are headquartered in the United States? - ANSWER 0 Beginning with the merger of JP Morgan Chase and MetLife , a commercial bank and an insurance company, the largest firms in the financial industry began to organize as financial services holding companies. - ANSWER Citibank and Travelers Professor Greene opens an accou