18 Questions
What is one of the services banks have offered for centuries?
Discounting Commercial Notes and Making Business Loans
What is one of the trends affecting financial-service firms?
Rising Competition
What is one of the services banks began offering in the past century?
Granting Consumer Loans
What is one of the reasons for change in banking and financial services?
Crisis, Reform, and Change
What is one of the financial products offered by banks and their competitors?
Mutual Funds, Annuities, and Other Investment Products
What is one of the technological changes affecting financial-service firms?
Automation
What was the main purpose of the Financial Services Modernization Act?
To allow banks to expand their role to be full-service providers
What type of financial institution specializes in helping people get residential mortgages?
Savings and loan association
What is the result of the convergence of financial service providers?
Increased competition and innovation
What are the closest competitors to banks in the financial sector?
Savings associations, credit unions, and fringe banks
What is the main benefit of the Financial Services Modernization Act for banks?
Increased market share and ability to enter new industries
What is the result of the Financial Services Modernization Act for the public?
One-stop shopping for financial services
What is the primary benefit of combining insurance products with banking services?
To leverage the trust that people generally have in banks to sell insurance products
What is the result of the increasing size of financial institutions?
Fewer small, independently owned financial institutions
What is an example of a bank-insurer affiliation?
The merger of Citicorp and Traveler’s Insurance to Citigroup
What is convergence in the financial sector?
The bringing together of firms from different industries to create conglomerate firms
Why did the anticipated synergy effects of the Citigroup merger not materialize?
Not provided in the passage
What is the relationship between consolidation and convergence in the financial sector?
They are related trends with consolidation leading to convergence
Test your knowledge of the financial services sector, including the services offered by banks and their competitors. Learn about the history of banking services and their role in the economy.
Make Your Own Quizzes and Flashcards
Convert your notes into interactive study material.
Get started for free
