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Lack of competition in the United States banking industry can be attributed to ____.
A) the fact that competition does not benefit consumers
B) the fact that branching has eliminated competition
C) recent legislation restricting competition
D) past regulations that the ability of banks to open branches
Answer: D
Diff: 1 Type: MC Page Ref: 255
Skill: Recall
Objective List: 11.4 Compare Canadian banking system with the U.S. system
Which of the following is a true statement concerning bank holding companies?
A) Bank holding companies own few large banks.
B) Bank holding companies are an important advantage to circumvent restrictive branching
regulations.
C) The McFadden Act has prevented bank holding companies from establishing branch banks.
D) Bank holding companies can own only banks.
Answer: B
Diff: 1 Type: MC Page Ref: 255
Skill: Recall
Objective List: 11.4 Compare Canadian banking system with the U.S. system
A financial innovation that developed as a result of banks avoidance of bank branching
restrictions was ____.
A) money market mutual funds
B) commercial paper
C) junk bonds
D) bank holding companies
Answer: D
Diff: 1 Type: MC Page Ref: 255
Skill: Recall
Objective List: 11.4 Compare Canadian banking system with the U.S. system
ATMs were developed because of breakthroughs in technology and as a ____.
A) means of avoiding restrictive branching regulations
B) means of avoiding paying interest to corporate customers
C) way of concealing transactions from the SEC
D) increasing the competition from foreign banks
Answer: A
Diff: 1 Type: MC Page Ref: 255
Skill: Recall
Objective List: 11.4 Compare Canadian banking system with the U.S. system