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Bank customers perceive Internet banks as being ____.
A) more secure than physical bank branches
B) a better method for the purchase of long-term savings products
C) better at keeping customer information private
D) prone to many more technical problems
Answer: D
Diff: 1 Type: MC Page Ref: 246
Skill: Recall
Objective List: 11.2 Examine financial innovation and the growth of the "shadow banking
system"
A disadvantage of virtual banks (clicks) is that ____.
A) their hours are more limited than physical banks
B) they are more secure than physical banks
C) they are more costly to operate than physical banks
D) customers worry about the security of on-line transactions
Answer: D
Diff: 1 Type: MC Page Ref: 246
Skill: Recall
Objective List: 11.2 Examine financial innovation and the growth of the "shadow banking
system"
So-called fallen angels differ from junk bonds in that ____.
A) junk bonds refer to newly issued bonds with low credit ratings, whereas fallen angels refer to
previously bonds that have had their credit ratings fall below Baa
B) junk bonds refer to previously bonds that have had their credit ratings fall below Baa, whereas
fallen angels refer to newly issued bonds with low credit ratings
C) junk bonds have ratings below Baa, whereas fallen angels have ratings below C
D) fallen angels have ratings below Baa, whereas junk bonds have ratings below C
Answer: A
Diff: 2 Type: MC Page Ref: 245 - 246
Skill: Recall
Objective List: 11.2 Examine financial innovation and the growth of the "shadow banking
system"
Newly-issued high-yield bonds rated below investment grade by the bond-rating agencies are
frequently referred to as ____.
A) municipal bonds
B) Yankee bonds
C) "fallen angels"
D) junk bonds
Answer: D
Diff: 1 Type: MC Page Ref: 246
Skill: Recall
Objective List: 11.2 Examine financial innovation and the growth of the "shadow banking
system"