Question

27.

Mutual savings banks or mutual savings associations

Select one:

a. are the prevalent forms of savings and loans associations today.

b. are owned and controlled by the depositors and sometimes by the borrowers.

c. are owned and operated by common stockholders with a mutual bond.

d. are mutually operated by the stockholders and depositors.

28.

Deposits fall into three general categories:

Select one:

a. transaction deposits, savings deposits, and time deposits.

b. commercial deposits, individual deposits, and government deposits.

c. individual deposits, demand deposits, and savings deposits.

d. transaction deposits, individual deposits, and fixed deposits.

29.

One way to hedge ____ risk is to lend variable rate loans whereby the rate changes as the costs of funds changes.

Select one:

a. credit

b. liquidity

c. interest rate

d. foreign exchange rate

30.

These institutions are owned by their members that share a common bond and operated solely for the benefit of the members.

Select one:

a. savings banks

b. savings and loans associations

c. commercial banks

d. credit unions

31.

____ are a type of deposit that has a scheduled maturity and usually entails penalty if withdrawn before the maturity date.

Select one:

a. Commercial deposits

b. Time deposits

c. Fixed deposits

d. Savings deposits

32.

When interest rates started to rise in the early 1980s, savings and loans faced the following problems except

Select one:

a. the value of their assets started to fall.

b. their cost of funds increased faster than their income.

c. the value of their fixed rate mortgages went down.

d. None of the above

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Answer 1

27. Mutual savings banks or mutual saving associations are:

b.are owned and controlled by the depositors and sometimes by the borrowers.

28. Deposits fall into three general categories:

a.transaction deposits,savings deposits and time deposits.

29. One way to hedge____risk is to lend variable rate loans whereby the rate changes as the cost of fund changes:

c.interest rate

30. These institutions are owned by their members that share a common bond and operated solely for the benefits of the members:

b.savings banks and associations

31.____ are a type of deposit that has a scheduled maturity and usually entails penalty if withdrawn before the maturity date:

c.Fixed deposit

32. When interest rate started to rise in the early 1980s,savings and loans faced the following problems except:

b.the cost of funds increased faster than their income