The US has a large number of commercial banks due to what circumstances? a. many investor wanted to be in banking b. there is good banking competition in the US c. Capital requierements mandated the need for many banks d. Laws restricting interstate banking
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The US has a large number of commercial banks due to what circumstances?
a. many investor wanted to be in banking
b. there is good banking competition in the US
c. Capital requierements mandated the need for many banks
d. Laws restricting interstate banking
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- QUESTION 4 Which of the following statements is NOT true? A. Relative to other US industries, there are a large number of small banks. B. The US banking industry is less competitive than the banking sectors in other advanced economies. C. The banking sectors in Canada and the UK are dominated by a few large banks.Requiring a foreign banks to operate under the same rules as domestic banks is termed?Which of the following is true about financial institutions in the United States compared to those in other countries? (a). Most U.S. intermediaries are allowed to engage in nonbanking (nonfinancial) business activities, whereas the nonbanking activities of foreign financial institutions have been severely restricted until recently (b) .US, financial institutions have been much more heavily regulated than their foreign counterparts with regard to expansion (branching) and the services that could be offered (c).U.S. financial institutions and their foreign counterparts have similar regulations with regard to engaging in nonbanking activities (d). U.S. financial institutions and their foreign counterparts have similar regulations with regard to expansion (branching) and the services that could be offered. (e).US, financial Institutions have been regulated less than their foreign counterparts with regard to expansion (branching) and the services that could be offered.
- 1. How has deregulation of the financial services industry affected the makeup offinancial intermediaries? How do you think intermediaries’ characteristics willchange in the future? 2. How do banking organizations in the United States differ from banking organizationsin other countries? Why are they different? 3. How is money created in a banking system that has fractional reserve requirements(i.e., a fractional reserve system)? 4. Describe the open market operations undertaken by the Federal Reserve. Whattype of trades would the Fed make if it wanted to increase interest rates? 5. How would funds—that is, the money supply—in the United States be affectedif the Federal Reserve increases reserve requirements? Give an example.c) In what three ways do commercial banks make a profit from the monetary system? (d) In Canada, what is the equivalent of the U.S. Federal Reserve? e) Suppose that the United States were to adopt a system of full-reserve banking; thatis, demand deposits would be illegal to lend out, and banks would only charge a nominalfee for safekeeping. Would this help to fix the problems that Mike Maloney layed out? Explain your answer.15. Beginning in the 1980s, Interstate Banking became an important issue for banks and the companies they do business with. Finally, in 1997 the United States allowed nationwide banking. Explain the implications of nationwide banking for the banks and for the multination corporations that borrow from the banks.
- Which of the following is a factor influencing the reduction of Caribbean correspondent bank relationships by global banks? Question 22Answer a. Trade and economic sanction violations costs incurred from additional due diligence to ensure full compliance. b. Nationalization of foreign bank branches. c. Increased competition from indigenous Caribbean banks. d. Increasing non-performing loans among Caribbean banks.Which of the following statements is true of export financing? Governments may promote exports by offering loan guarantees. The Ex-Im Bank finances the export activities of companies all over the world. Small businesses that have just started to export are financially stable and seldom require financing from government agencies. Governments usually offer loans to exporters with above-market interest rates.Determine the key reasons why a multinational corporation might decide to borrow in a country such as Brazil, where interest rates are high, rather than in a country like Switzerland, where interest rates are low.
- Discus various reasons why financial firms usually tend to offer credit in financial markets outside their own country.15. In making loans to a single customer, commercial banks are not restricted to a maximum percentage of their capital, i.e. there is not a limit on how a bank to lend to a single customer. a. True b. False 16. The opening of a commercial bank in the United States a. requires a charter from the city in which they plan to operate requires a charter from a state or the federal government. b. c. None of these is correct d. always requires a charter from the federal government. 17. Current bank regulations: a. set requirements for the maximum amount of equity that banks can hold. b. None of the other answers are correct. c. impose standards for how liquid the bank is. d. involve a trade-off between the safety of the bank and the efficiency of bank operations. 18. The Basel framework recommends that banks maintain capital in proportion to their: a. None of the other answers is correct. b. total assets c. risk-weighted liabilities d. risk-weighted assets 19. The potential risk that financial…Identify the reasonsfor U.S. banks to operate in foreign countries and for foreignbanks to operate inthe United States.