30. Time intermediation involves the investment of small amounts by investors into mutual funds that
invest in long-term securities such as stocks and bonds.
True False
31. The efficiency with which FIs provide payment services directly benefits the economy.
True False
32. The adverse effects on the economy that can occur because of major disturbances to the special
functions or services provided by financial institutions are negative externalities.
True False
33. Unfairly excluding some potential financial service consumers from the financial services
marketplace is a reason why FIs must absorb net regulatory burden.
True False
34. Regulation of FIs is an attempt to enhance the social welfare benefits and mitigate the social
costs of providing FI services.
True False
35. In an attempt to enhance the net social welfare benefits of the services provided by financial
intermediaries, safety and soundness regulation requires a DI to hold a minimum level of cash reserves against deposits.
True False
1-6
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36. Because of changes in regulatory barriers, technology, and financial innovation, a single financial
service firm may now be able to offer a full set of financial services.
True False
37. Small investors in mutual funds are often able to realize larger returns than they would receive
from bank deposits.
True False
38. The purpose of guaranty funds in safety and soundness regulation is to protect claim-holders
when an FI collapses or fails.
True False
39. In most countries, cash is required to be held in reserve against deposits.
True False
40. The passage of legislation to prevent discrimination in lending is an example of regulation to
protect investors.
True False
41. The passage of legislation to ensure that FIs are meeting the needs of their local communities is
an example of entry regulation.
True False
1-7
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McGraw-Hill Education.
42. Firms in industries that have low costs of entry tend to enjoy larger profits than firms in industries
with high costs of entry.
True False
43. In recent years, the proportion of savings and demand deposits have decreased and the
proportion of pension funds have increased in the financial assets held by U.S. households.
True False
44. The proportion of financial assets controlled by depository institutions has been increasing in
recent years.
True False
45. One reason for the increasing proportion of total financial assets controlled by pension funds and
investment companies is that these intermediaries exploit the comparative advantages of size and diversification.
True False
46. Pension and mutual funds have a lower correlation between the maturities of their assets and
liabilities than do commercial banks and thrifts.
True False
47. Savers increasingly favor investments that closely imitate diversified investments in the direct
securities markets over the transformed financial claims offered by traditional FIs.
True False
1-8
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McGraw-Hill Education.
48. The standardization of many FI products is evidence of the inefficient institutionalization by
financial markets and the mechanisms through which these products trade.
True False
49. The Internet has allowed individual investors to purchase securities while benefiting from
decreased transactions costs.
True False
50. Services provided by depository institutions have become relatively less significant as a portion of
all services provided by FIs.
True False
Multiple Choice Questions
51. Economic collapse during the 1930s, the banking system in the U.S. performed directly or
indirectly all financial services. Those functions included all of the following EXCEPT
A. commercial banking.
B. money market funds.
C. investment banking.
D. stock investing.
E. insuranceservices.
1-9
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McGraw-Hill Education.
52. Depository financial institutions include all of the following EXCEPT
A. commercial banks.
B. savings banks.
C. investment banks.
D. credit unions.
E. all of the above are depository institutions.
53. Nondepositoryfinancial institutions are represented by all of the following EXCEPT
A. insurance companies.
B. mutual funds.
C. finance companies.
D. credit unions.
E. securities firms.
54. Which of the following statements is FALSE?
A. A financial intermediary specializes in the production of information.
B. A financial intermediary reduces its risk exposure by pooling its assets.
C. A financial intermediary benefits society by providing a mechanism for payments.
D. A financial intermediary may act as a broker to bring together funds deficit and funds surplus units.
E. A financial intermediary acts as a lender of last resort.
1-10
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金融风险管理练习选择题1
