QUESTION 1 What do a insurance company and a commercial bank have in common?

QUESTION 1

1. What do a insurance company and a commercial bank have in common?
2. Both link net borrowers with net lenders.
3. Both are financial intermediaries.
4. Both provide the public with a wide range of financial services.
5. All of the options are correct.

16.665 points  

QUESTION 2

1. Financial claims against financial intermediaries include
2. saving deposits and mortgages
3. checking deposits and auto loans
4. time deposits, mortgages, and savings deposits
5. checking deposits, savings deposits, and time deposits.

16.667 points  

QUESTION 3

1. Financial intermediaries are in debt to
2. net lenders.
3. the U.S. Treasury.
4. only other intermediaries
5. net borrowers.

16.667 points  

QUESTION 4

1. __________ are deposits that have a scheduled maturity and a penalty for early withdrawal.
2. Savings deposits
3. Transactions deposits
4. Contingent claims
5. Time deposits

16.667 points  

QUESTION 5

1.             __________ are deposits that can be exchanged for currency and that are used to make payments through writing a check or making an electronic transfer.
2. transactions deposits
3. contingent claims
4. savings deposits
5. time deposits

16.667 points  

QUESTION 6

1. Why are financial intermediaries regulated?
2. to preserve the public's confidence in the safety and soundness of the system.
3. All options are correct.
4. to protect the public from fraud
5. to provide a smooth running financial system