Académique Documents
Professionnel Documents
Culture Documents
HONOR PLEDGE
I pledge to support the Honor System of Old Dominion University. I will refrain from any form of
academic dishonesty or deception, such as cheating or plagiarism. I am aware that as a member
of the academic community it is my responsibility to turn in all suspected violators of the honor
code. I will report to a hearing if summoned.
You are allowed one 8.5 by 11 page of notes- one-side and a financial calculator for this exam
You will turn-in the opscan sheet and problems
1. Which of the following has been an important trend regarding consolidation and
geographic expansion in banks?
A. Increased bank branching activity
B. The formation of more holding companies to purchase smaller banks
C. Mergers among some of the largest banks in the industry
D. Significant rise in the average size of individual banks
E. All of the options are correct
5. The Bank, N.A. accepts deposits from thousands of individuals and lends that
money to (among others) the Stillwater Body Shop to expand their work bays. Which
of the following roles is the bank performing?
A. The intermediation role
B. The payments role
C. The risk management role
D. The guarantor role
E. The policy role
6. The law that set up the federal banking system and provided for the chartering of
national banks was the:
A. National Bank Act.
B. McFadden Act.
C. Glass-Steagall Act.
D. Bank Merger Act.
E. Federal Reserve Act.
7. The 1994 law that allowed bank holding companies to acquire banks anywhere in
the U.S. is:
A. the Glass-Steagall Act.
B. the Federal Deposit Insurance Corporation Improvement Act.
C. the National Bank Act.
D. the Riegle-Neal Interstate Banking and Branching Efficiency Act.
E. None of the options are correct.
8. The law that allows banks to affiliate with insurance companies and securities
firms to form financial services conglomerates is:
A. the National Bank Act.
B. the Glass-Steagall Act.
C. the Garn-St Germain Depository Institutions Act.
D. the Riegle-Neal Interstate Banking Act.
E. the Gramm-Leach-Bliley Act (Financial Services Modernization Act).
9. As per the Gramm-Leach-Bliley Act, one of the ways through which a banking-
insurance-securities affiliation can take place is through:
A. a financial holding company.
B. the state insurance commissions.
C. the European Central Bank.
D. a financial service corporation.
E. a financial modernization organization.
11. Which federal banking act requires that financial service providers establish the
identity of customers opening new accounts?
A. the Sarbanes-Oxley Act
B. the USA Patriot Act
C. the Check 21 Act
D. the Fair and Accurate Credit Transactions Act
E. the Bankruptcy Abuse Prevention and Consumer Protection Act
12. Which federal banking act requires the Federal Trade Commission to make it
easier for victims of identity theft to file theft reports and requires credit bureaus to
help victims resolve the problem?
A. The Sarbanes-Oxley Act
B. The USA Patriot Act
C. The Check 21 Act
D. The Fair and Accurate Credit Transactions Act
E. The Bankruptcy Abuse Prevention and Consumer Protection Act
13. As per the National Currency and Bank Acts, the comptroller of currency ensures
that every national bank is examined by a team of federal examiners at least:
A. twice in a year.
B. once in 3 months.
C. once every 12 to 18 months.
D. once every 9 to 12 months.
E. once in a month.
14. The concentration of U.S. bank deposits in the hands of the largest banks has
_________ recently.
A. declined
B. increased
C. remained essentially unchanged
D. exhibited large fluctuations in both directions
E. None of the options are correct
17. When a bank holding company acquires a nonbank business it must be approved
by the:
A. FDIC.
B. Comptroller of the Currency.
C. Federal Reserve.
D. SEC.
E. All the options are correct
18. Banks depend heavily upon borrowed funds supplied by customers with little
owners' capital invested. This means that banks make heavy use of:
A. financial leverage.
B. capital restructuring.
C. operating leverage.
D. margin borrowing.
E. None of the options are correct.
1. You know the following information about the Miller State Bank:
a. Given this information, what is the value of this firm's net loans?
c. Given this information, what is the value of this firm's total liabilities?
d. Given this information, what the value of this firm's undivided profits?
e. Given this information, what is the value of this firm's total liabilities plus equity?
2. You know the following information about the Davis National Bank:
a. Given this information, what is the value of this firm's net interest income?
b. Given this information, what is the value of this firm's net noninterest income?
c. Given this information, what is the value of this firm's pretax net operating
income (or net income before extraordinary items)?
d. Given this information, what is the value of this firm's net income?
e. Given this information, what is the value of this firm's increase in undivided
profits?
3. Following is the information listed below for Carter State Bank.
D. If, the bank has no off-balance sheet items, What is the banks leverage ratio?