1) State banking authorities have sole jurisdiction over state banks
A) without FDIC insurance.
B) that are not members of the Federal Reserve System.
C) operating as bank holding companies.
D) chartered in the 21st century.
Financial Innovation and the Growth of the “Shadow Banking System”
1) Financial innovations occur because of financial institutions search for ________.
A) profits
B) fame
C) stability
D) recognition
2) ________ is the process of researching and developing profitable new products and services by financial institutions.
A) Financial engineering
B) Financial manipulation
C) Customer manipulation
D) Customer engineering
3) The most significant change in the economic environment that changed the demand for financial products in recent years has been
A) the aging of the baby boomer generation.
B) the dramatic increase in the volatility of interest rates.
C) the dramatic increase in competition from foreign banks.
D) the deregulation of financial institutions.