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WorksheetsBF 1 - Overview of Financial Systems
Total questions: 15
Worksheet time: 11mins
Financial intermediaries that accept deposits and make loans are called (a) .
Banks, savings and loan associations, mutual savings banks, and credit unions _________.
since deregulation now provide services only to small depositors.
have been adept at innovating in response to changes in the regulatory environment.
produce nothing of value and are therefore a drain on societyʹs resources.
are no longer important players in financial intermediation.
Banks and other financial intermediaries engage in financial intermediation, which ________________.
has no effect on economic performance.
involves borrowing from investors and lending to savers.
can benefit economic performance.
can hurt the performance of the economy.
An important financial intermediary that assists in the initial sale of securities in the primary market is the (a) .
The financial intermediaries that the average person interacts with most frequently are (a) .
Which of the following is not a financial intermediary?
a pension fund
a business college
a life insurance company
a credit union
Securities are ________ for the person who buys them, but are ________ for the individual or firm that issues them.
negotiable; nonnegotiable
nonnegotiable; negotiable
assets; liabilities
liabilities; assets
Which of the following financial intermediaries is not a depository institution?
A finance company
A commercial bank
A credit union
A savings and loan association
Which of the following is a contractual savings institution?
A savings and loan association
A life insurance company
A mutual fund
A credit union
Contractual savings institutions include ____________
commercial banks.
money market mutual funds.
life insurance companies.
mutual savings banks.
Which of the following are not contractual savings institutions?
Credit unions
Life insurance companies
Pension funds
State and local government retirement funds
Financial intermediaries that accept deposits and make loans are called (a) institutions.
Which of the following are investment intermediaries?
State and local government retirement funds
Pension funds
Mutual funds
Life insurance companies
Which of the following is not a contractual savings institution?
A fire and casualty insurance company
A savings and loan association
A pension fund
A life insurance company
What are the functions of investment banks?
