FINA 365-Exam 1 with Latest Questions and Answers, Exams of Finance

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FINA 365-Exam 1 with Latest Questions and Answers In economic collapse during the 1930s, the banking system in the U.S. performed directly or indirectly all financial services. Those functions included all of the following EXCEPT: . commercial banking . money market funds . Investment banking . stock investing . insurance services ANSWERV V B moowpr Depository financial institutions include all of the following EXCEPT: . commercial banks . savings banks . investment banks . credit unions . all of the above are depository institutions ANSWERV JV C moow,r Nondepository financial institutions are represented by all of the following EXCEPT: A. insurance companies B. mutual funds C. finance companies D. credit unions E. securities firms ANSWERVV D Which of the following statements is FALSE? A. A financial intermediary specializes in the production of information B. A financial intermediary reduces its risk exposure by pooling its assets C. A financial intermediary benefits society by providing a mechanism for payments D. A financial intermediary may act as a broker to bring together funds deficit and funds surplus units E. A financial intermediary acts as a lender of last resort ANSWERV JV E Which function of an Fl reduces transaction and information costs between a corporation and individual which may encourage a higher rate of savings? A. Brokerage services B. Asset transformation services C. Information production services D. Money supply management E. Administration of the payments mechanism ANSWERV V¥ A