Chapter 19

Question 1

automated banking machine (abm)

Question 2

ATM

Question 3

bank holding companies

Question 4

branches

Answer 4

Additional offices of banks that conduct
banking operations.

Question 5

community banks

Answer 5

small banks, local

Question 6

deposit rate ceilings

Answer 6

Restrictions on the maximum
interest rates payable on deposits

Question 7

disintermediation

Answer 7

A reduction in the flow of funds
into the banking system that causes the amount
of financial intermediation to decline.

Question 8

dual banking system

Answer 8

The system in the United States
in which banks supervised by the federal government and banks supervised by the states operate
side by side.

Question 9

e-cash

Answer 9

A form of electronic money used on the
Internet to pay for goods and services.

Question 10

edge act corporation

Question 11

financial engineering

Answer 11

: The process of researching and
developing new financial products and services
that would meet customer needs and prove
profitable.

Question 12

future contracts

Question 13

hedge

Answer 13

To protect oneself against risk.

Question 14

IBFs

Question 15

national banks

Question 16

orignate to distribute

Question 17

securitization

Answer 17

The process of transforming illiquid
financial assets into marketable capital market
instruments.

Question 18

shadow banking system

Answer 18

A system in which bank
lending is replaced by lending via the securities
market.

Question 19

smart card

Question 20

state banks

Answer 20

Banks chartered by the states.

Question 21

subprime mortgage

Answer 21

Mortgage loans made to borrowers who do not qualify for loans at the usual rate
of interest due to a poor credit history.

Question 22

superregional banks

Question 23

sweep account

Question 24

virtual bank