Chương 16

The principal reason banks are chartered by federal and state governments is to make loans to their customers.

• T

• F

Risk in banking tends to be concentrated in a bank’s loan portfolio.

• T

• F

The largest banks have, on average, reduced their dependence on real estate loans relative to smaller banks.

• T

• F

Real estate lending is popular with bank, in part, due to the growth of the secondary mortgage market.

• T

• F

Banks in the United States are, on average, examined at least once every three years.

• T

• F

Smaller banks tend to emphasize wholesale banking services.

• T

• F

Retail credit in banking refers to such loans as residential mortgages and installment loans to individuals.

• T

• F

Loans made by a particular bank secured by the bank’s own stock are not usually permitted except under special circumstances.

• T

• F

Federally-supervised banks in the U.S. must make an “affirmative effort” to provide loans and other services to all credit-worthy borrowers in their chosen service area.

• T

• F

Loans to minors are not legally enforceable contracts in most states.

• T

• F