#1
What is the primary function of a savings institution?
To provide loans for businesses
To offer checking accounts
To encourage saving and provide interest on deposits
To invest in stocks and bonds
#2
Which of the following is a characteristic of a savings institution?
For-profit organization
Customer-owned cooperative
Focused on maximizing shareholder returns
Offers primarily commercial loans
#3
Which regulatory body oversees savings institutions in the United States?
Federal Deposit Insurance Corporation (FDIC)
Securities and Exchange Commission (SEC)
Office of the Comptroller of the Currency (OCC)
National Credit Union Administration (NCUA)
#4
What is a major source of funding for savings institutions?
Interest from loans
Government grants
Customer deposits
Stock issuance
#5
What is a common feature of savings institutions compared to commercial banks?
Higher interest rates on loans
Lower interest rates on savings accounts
More diversified investment portfolios
Emphasis on serving local communities
#6
Which of the following is NOT a type of savings institution?
Savings and loan association (S&L)
Mutual savings bank
Credit card company
Cooperative bank
#7
Which of the following is a risk faced by savings institutions?
Interest rate risk
Regulatory risk
Market risk
All of the above
#8
What is the purpose of the Federal Home Loan Bank System (FHLBank System) in the United States?
To provide insurance for savings institutions
To regulate savings institutions
To provide liquidity and funding for savings institutions
To set interest rates for savings accounts
#9
Which of the following is a function of the Federal Reserve System?
Supervising savings institutions
Setting monetary policy
Providing deposit insurance
Regulating the stock market
#10
Which of the following is an example of a savings institution?
Commercial bank
Credit union
Investment bank
Hedge fund
#11
What role do savings institutions play in the economy?
They primarily fund government projects
They provide liquidity to financial markets
They manage pension funds
They regulate other financial institutions
#12
Which legislation had a significant impact on the operations of savings institutions in the 1980s?
Glass-Steagall Act
Gramm-Leach-Bliley Act
Sarbanes-Oxley Act
Financial Institutions Reform, Recovery, and Enforcement Act (FIRREA)
#13
What is a key difference between savings institutions and credit unions?
Credit unions are for-profit institutions
Savings institutions are owned by their customers
Credit unions primarily serve large corporations
Savings institutions are not insured by the government
#14
What is a key benefit of a savings institution converting from a mutual to a stock form?
Increased access to capital markets
Higher interest rates for depositors
Lower fees for customers
Greater control by customers
#15
What impact can a decrease in interest rates have on savings institutions?
Increased profitability
Decreased loan demand
Lower deposit growth
All of the above
#16
What is a key difference between savings institutions and investment banks?
Investment banks primarily deal with consumer banking
Savings institutions focus on underwriting securities
Investment banks do not accept deposits
Savings institutions are more regulated