30 Questions
What is the primary purpose of the financial system?
To encourage savings and transfer them to individuals and institutions needing credit
What is one of the outcomes of the financial system's process of encouraging savings and transforming them into investment spending?
An increase in new job creation and a rise in living standards
Which of the following is NOT a supporting service provided by the financial system?
Currency exchange services
What is the relationship between the financial system and economic growth?
The financial system promotes economic growth
What is the ultimate goal of the financial system's process of encouraging savings and transforming them into investment spending?
To promote economic growth and higher living standards
What is one of the ways the financial system supports individuals and institutions?
By providing risk protection services
What financial service do banks and their competitors offer to help consumers manage their money?
Managing Cash
What is an example of a type of loan that banks and their competitors offer to entrepreneurs?
Venture Capital Loans
Which of the following financial services is related to helping individuals plan for their future?
Selling and Managing Retirement Plans
What is an example of a type of financial product that banks and their competitors offer to investors?
Mutual Funds
What is an example of a type of risk management service that banks and their competitors offer?
Hedging Services
What is the term for a type of financial service that banks and their competitors offer to help businesses manage their equipment needs?
Equipment Leasing
What does the Financial Services Modernization Act of 1999 allow?
One-stop shopping for financial services
What is a challenge in the financial services industry today?
Differentiating banks from other financial-service providers
What service have banks offered for centuries?
Currency exchange
What is a service that banks and their competitors offer?
Discounting commercial notes
What is a service that banks have traditionally offered?
Checking accounts (demand deposits)
What is a service that banks offer to support government activities?
Credit value services
What is the primary focus of marketing in the banking industry?
Satisfying the needs of clients
Which of the following careers is NOT typically found in a financial firm?
Astronaut
What is a major trend affecting all financial-service firms?
Consolidation and geographic expansion
What is the role of a Credit Analyst?
To analyze creditworthiness of clients
What is another term for a Bank Examiner?
Bank Regulator
What is the main function of a Treasury Dealer?
To trade financial instruments
What is the current state of traditional banking?
Dying
Why are banks losing market share?
Because their largest customers have found ways to obtain funds without them
What is happening to the financial market share of banking?
It is decreasing
What is a characteristic of the financial-service providers in the U.S.?
They are all converging in terms of the services they offer
What is a type of financial institution that competes with banks?
All of the above
What is a factor that may be contributing to the decline of traditional banking?
Over-regulation
This quiz covers the roles of the financial system, including encouraging savings, transferring savings to individuals and institutions, and contributing to economic growth.
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