1.An indirect transfer would include which of the following? A. Boston National Bank accepts customer deposits in accounts...

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Finance

1.An indirect transfer would includewhich of the following?
A. Boston National Bank acceptscustomer deposits in accounts that average about $1,000 each whilemaking various loans that average about $50,000 each.
B. Northeastern Life Insurance Company sells a life insurancepolicy to Wendy, investing the premium in Intel.
C.      Mary lends George $100 whopromises to repay when he receives his next paycheck.
D.     Alice buys 100 mutual fund shares. Themutual fund uses her money to buy additional stocks for thefund.
E.      Norman uses some of his pre-taxwages to put into his retirement account. The trustee of theaccount uses the money to buy bonds that mature in the year Normanexpects to retire.
2.        A ____ is asecurity that is a contract whose value is based on some mutuallyagreed upon other existing security.
A. primary security
B.      secondary security
C.      money market security
D.     capital market security
E.     derivative security
3.         With a(n)_ transaction, no new funds are generated forthe original issuer of the security.
A.     capitalmarket
B.      secondary market
C.      capital market
D.     indirect
E.      direct
4.      Which of the following is not a factor in encouraging specificfinancial institutions to engage in other financial services likebanking, brokerage, insurance, investment banking, and soforth?
A.     Changingregulations allow financial institutions to offer more financialservices.
B.      The federal government requiresthem to do this.
C.      Global financial institutions haveincreased competition.
D.     There has been a increase in the need tomanage the major risks at financial institutions.
E.      The cost of providing financialservices is being reduced by improvements in technology.
5.     The____ are the most diversified type of depositoryinstitutions.
A.     CreditUnions.
B.      Savings Institutions
C.      Finance Companies
D.     Commercial Banks
E.      Mutual Funds

Answer & Explanation Solved by verified expert

3.7 Ratings (509 Votes)

1 Answer is E Indirect Transfer means the disposition of an indirect ownership interest in an asset fully or partially Here the trustee have an indirect control over the Normans account Hence trustee will gain See Answer

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1.An indirect transfer would includewhich of the following?A. Boston National Bank acceptscustomer deposits in accounts that average about $1,000 each whilemaking various loans that average about $50,000 each.B. Northeastern Life Insurance Company sells a life insurancepolicy to Wendy, investing the premium in Intel.C. Mary lends George $100 whopromises to repay when he receives his next paycheck.D. Alice buys 100 mutual fund shares. Themutual fund uses her money to buy additional stocks for thefund.E. Norman uses some of his pre-taxwages to put into his retirement account. The trustee of theaccount uses the money to buy bonds that mature in the year Normanexpects to retire.2. A ______________ is asecurity that is a contract whose value is based on some mutuallyagreed upon other existing security.A. primary securityB. secondary securityC. money market securityD. capital market securityE. derivative security3. With a(n)_____________________ transaction, no new funds are generated forthe original issuer of the security.A. capitalmarketB. secondary marketC. capital marketD. indirectE. direct4. Which of the following is not a factor in encouraging specificfinancial institutions to engage in other financial services likebanking, brokerage, insurance, investment banking, and soforth?A. Changingregulations allow financial institutions to offer more financialservices.B. The federal government requiresthem to do this.C. Global financial institutions haveincreased competition.D. There has been a increase in the need tomanage the major risks at financial institutions.E. The cost of providing financialservices is being reduced by improvements in technology.5. The______________ are the most diversified type of depositoryinstitutions.A. CreditUnions.B. Savings InstitutionsC. Finance CompaniesD. Commercial BanksE. Mutual Funds