Test Bank Financial Institutions Management, 9th Edition By Anthony Saunders A+
- From Business, General Business
- NUMBER1TUTOR
- Rating : 88
- Grade : A+
- Questions : 0
- Solutions : 0
- Blog : 3
- Earned : $14856.59
Description
. Currently (2015) J. P. Morgan Chase is the largest bank holding company in the world and operations in 60 countries.
FALSE
2. As of 2015, U.S. FIs held assets totaling over $29 trillion.
TRUE
3. Financial institutions act as intermediaries between suppliers and users of money.
TRUE
4. If a household invests in corporate securities and does not supervise how the funds are invested or used by the corporation, the risk of not earning the desired return or not having the funds returned increase.
TRUE
5. If not done by FIs, the process of monitoring the actions of borrowers would reduce the attractiveness and increase the risk of investing in corporate debt and equity by individuals.
TRUE
6. Failure to monitor the actions of firms in a timely and complete fashion after purchasing securities in that firm exposes the investor to agency costs.
TRUE
7. The risk that the sale price of an asset will be less than the purchase price of an asset is called liquidity risk.
FALSE