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Banks & Other Financial Intermediaries Chapter Exam

Exam Instructions:

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

Page 1

Question 1 1. How would an investment bank help a company raise funds in the secondary securities market?

Question 2 2. Which of the following is sold on a securities market?

Question 3 3. What does an investment banker do?

Question 4 4. Which of these offers limited in-person services for a savings in commissions?

Question 5 5. Which brokerage firm offers all its services over the internet with the lowest commissions?

Page 2

Question 6 6. Which type of brokerage firm provides financial planning services?

Question 7 7. What type of pension plan guarantees that the employee will receive a particular amount of benefit once he or she retires, even if the employer's investments don't do well?

Question 8 8. Alex wants to retire but is not vested. Why is this a bad idea?

Question 9 9. What is a key difference between pension plans and 401(k) plans?

Question 10 10. Where does a bank get most of its money to lend?

Page 3

Question 11 11. Which one of the following is probably the most important role a commercial bank has in the economy?

Question 12 12. Which of the following is not a traditional commercial banking function?

Question 13 13. Choose the best answer that defines financial intermediation.

Question 14 14. Choose the best example of a financial intermediary.

Question 15 15. Choose the best answer to explain why investment firms are considered financial intermediaries.

Page 4

Question 16 16. The purpose of a central bank is to?

Question 17 17. The central bank of the United States is also known as the?

Question 18 18. The general rise in the price of everyday goods is known as:

Question 19 19. Choose the best example of a non-depository institution.

Question 20 20. Choose the best example of an investment institution.

Page 5

Question 21 21. Choose the best example of a depository institution.

Question 22 22. Which of the following refers to a company that is owned by shareholders and not policyholders?

Question 23 23. Which of the following is a mutual insurance company?

Question 24 24. Which of the following is the correct term that refers to a policy where you get paid dividends?

Question 25 25. Which of these best defines a mutual fund as given in the lesson?

Page 6

Question 26 26. Which does not represent a main type of mutual fund as described in the lesson?

Question 27 27. Which of these statements is not true about mutual funds?

Question 28 28. Which one of the following is an activity in which a savings and loan association engages?

Question 29 29. Which one of the following institutions funds IPOs?

Question 30 30. Which type of banking institution is nonprofit and caters to specific groups of people who become members of the institution?

Banks & Other Financial Intermediaries Chapter Exam Instructions

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

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