Checkup 3 Flashcards
Savings and loan associations are regulated by ________________________. (FHLBS)
Federal Home Loan Bank System
mutual savings banks are primarily in __________ states
industrial
credit unions are part of what organization?
fraternal organization
pension funds are growing _____________ly
rapid
investment bankers ________ funds
channel
life insurance companies are investment ________________________
premium income
Mutual savings banks are usually regulated by the _________________ state.
chartering
The majority of the savings deposits of savings and loan associations are invested in ____________________ loans.
mortgage
Private placement refers to the ____________ sale of securities by the issuer to a buyer.
direct
The deposits of most mutual savings banks are insured by the _________________________________.
Federal Deposit Insurance Corporation
The Federal Savings and Loan Insurance Corporation was established by the ________________________________ in 1934.
National Housing Act
Savings and loan associations do not make _____________________ nor accept _________________________.
consumer loans; demand deposits
Three fourths of all mutual savings banks are located in three states: _______________________, __________________, and _____________________________________.
Massachusetts, New York, and Connecticut
Depositors in mutual savings banks have the legal status of _________________.
creditors
Most mutual savings banks were founded prior to ________________.
World War II
Life insurance companies contribute to the growth of the economy through the extension of ________________ to individuals.
policy loans
________________ make inventory loans to both retailers and wholesalers.
Sales finance companies
The interest rate on savings deposits in savings and loan associations is usually higher than interest on __________________________.
commercial bank savings deposits
Mutual savings banks must be members of the Federal Home Loan Bank System. (True or false?)
False
Investment bankers accept time deposits but not demand deposits. (True or false?)
False
A syndicate is a group of investment bankers who join together to underwrite and sell a __________.
security issue
Investment bankers usually underwrite _________ issues on a best efforts basis.
security
Private placement refers to a direct consumer loan from a commercial bank. (T or F?)
False
Savings banks were called mutual savings banks because all shareholders share equally. (T or F?)
False
