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Choose the correct answer:

1. Which of the following is one of the several advantages that bank holding company organizations have over other types of banking organizations?

A. greater access to capital markets

b product-line diversification

C.cability to use higher leverage

d. al the options are correct

2. Money center banks are usually significantly impacted by changes in the health of the local economy. A True B False

3. The "too big to (let) fail" theory asserts that:

OA The government should not support banks

O B. banks are large insize that they can easily fail

OC. Large banks shold purchase failed banks

O D. Banks must be supported by government when they face potential failure

D The advantages of electronic banking facilities include

A higher costs to the bank.

B. greater convenience for bank customers

. C ease of obtaining foreign currency abroad.

D. all of the above.

E. both (a) and (b) of the above.

F. both (b) and (c) of the above

E. Commercial banks improve economic welfare because:

OA. they allow funds to move from those without productive investmentopportunities to those who have such opportunities.

OB. they allow consumers to time their purchases better.

OC they weed out inefficient firms.

D. they do all of the above

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