Chương 1

Under U.S. federal law, an institution making only loans to households and offering uninsured checkable deposits and savings deposits qualifies as a commercial bank.

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Nonbank banks can offer deposits to the public, but these deposits are not eligible for insurance coverage by the FDIC.

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The etymological roots of the word "bank" trace this word back to an Italian term referring to a  "money-changer's table".

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According to the textbook, banks are those financial institutions that today offer the widest range of financial services of any business firm in the economy.

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According to the delegated monitoring theory banks are able to attract borrowing customers because they pledge confidentiality.

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Managing the financial affairs and property of individuals and business firms falls under the type of banking service line known as cash management services.

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The role performed by banks in the economy in which they transform savings into credit is known as the intermediation role.

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The role performed by banks in which they stand behind their customers when those customers are unable to pay a debt obligation is known as the guarantor role.

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When banks serve as conduits for government policy this is referred to as their agency role.

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According to the textbook, high-volume banking is required to make efficient use of automation and other technological innovations.

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