Banking- Chapter 10: Specialized Bank Services

A financial corporation that is federally chartered and allowed to engage ONLY in international banking.

• correspondent bank

• Edge corporation

• foreign direct investment

• the World Bank

An instrument given by a bank on behalf of a buyer to pay back the bank of the seller a given sum in a given time is called a(n)

• promissory note

• draft

• international IOU

• letter of credit

The demand for a given currency will be strong if all of the following factors are present EXCEPT

• low inflation

• low interest rates

• a positive trade balalnce

• a strong economic forecast

Which of the following is a provision of the Gramm-Leach-Bliley Act?

• Banks are prohibited from owning brokerage firms.

• Banks are not allowed to sell stock.

• Financial services companies are required to have and provide to customers a written privacy policy.

Which of the following bank collection services allows accounts receivable payments to be sent directly to the bank?

• zero-balance accounts

• automated clearing house network

• lockbox service

The practice of buying debt at a discount is called

• discounting

• investing

• financing

• factoring

The person who creates a trust is called a...

• corpus

• donor

• beneficiary

• maker

Which of the following retirement products allows employees to make tax-deferred contributions, which are often matched by the company, to a trust?

• traditional IRA

• variable annuity

• 401(k) plan

• ROTH IRA

A debt instrument issued for a period of more than one year with the purpose of raising capital through borrowing is called a(n)

• bond

• annuity

• CD

• stock

The _____________ charters and supervises U.S. national banks that do international business.

• The Securities and Exchange Commission

• The Federal Deposit Insurance Corporation

• Office of the Comptroller of the Currency