the economics of money, banking, and financial markets

331 #

© 2014 Pearson Canada Inc.#

Economics of Money, Banking & Financial Markets, 5e (Mishkin)
Chapter 12 Nonbank Finance

12.1 Insurance

1. 
   

   Which of the following is a nonbank financial institution?
   A) A life insurance company
   B) A credit union
   C) A savings and loan association
   D) A mutual fund
   Answer: A
   Diff: 1 Type: MC Page Ref: 270
   Skill: Applied
   Objective List: 12.1 Identify the important aspects of the insurance industry

   
   


2. 
   

   Nonbank financial institution include ____.
   A) mutual savings banks
   B) money market mutual funds
   C) commercial banks
   D) life insurance companies
   Answer: D
   Diff: 1 Type: MC Page Ref: 270
   Skill: Recall
   Objective List: 12.1 Identify the important aspects of the insurance industry

   
   


3. 
   

   Demutualization refers to ____.
   A) the conversion of mutual insurance companies from being owned by policy holders to stock
   holders
   B) the conversion of mutual fund companies from being owned by policy holders to stock
   holders
   C) the conversion of insurance companies from being owned by stock holders to policy holders
   D) the conversion of mutual fund companies from being owned by stock holders to policy
   holders
   Answer: B
   Diff: 2 Type: MC Page Ref: 271
   Skill: Recall
   Objective List: 12.1 Identify the important aspects of the insurance industry