Chapter 1

Question 1

Intermediation

Answer 1

The act of pooling and investing the money of many people

Question 2

Disintermediation

Answer 2

When depositors invest their own funds directly

Question 3

Re-intermediation

Answer 3

If the return on government notes declines or the stock market goes through a bad period, people tend to re-deposit their money into banks and savings institutions

Question 4

WHO maintain the economic balance of our country by managing the debt of the entire federal government?

Answer 4

The United States Treasury

Question 5

What is the duty of the Office of the Comptroller of the Currency (OCC)?

Answer 5

charters,
regulates,
supervises all NATIONAL BANKS

Question 6

FIRREA

Answer 6

In 1989, the government passed the Financial Institutions Reform, Recovery and Enforcement Act.

Question 7

Freehold Estates

Answer 7

Estates that last for an indefinite period of time.

Question 8

Life Estate

Answer 8

Freehold estate that lasts only as long as the life of the owner or a designated person. It can be mortgaged or sold during that lifetime

Question 9

Estate for years

Answer 9

Leasehold estate with a definite beginning and ending date without termination notice or automatic renewal