Accounting
Anthropology
Archaeology
Art History
Banking
Biology & Life Science
Business
Business Communication
Business Development
Business Ethics
Business Law
Chemistry
Communication
Computer Science
Counseling
Criminal Law
Curriculum & Instruction
Design
Earth Science
Economic
Education
Engineering
Finance
History & Theory
Humanities
Human Resource
International Business
Investments & Securities
Journalism
Law
Management
Marketing
Medicine
Medicine & Health Science
Nursing
Philosophy
Physic
Psychology
Real Estate
Science
Social Science
Sociology
Special Education
Speech
Visual Arts
Question
New retail products and services based heavily on technology often are risky because of the high usage rate necessary to make them positive net present value projects.
Answer
This answer is hidden. It contains 4 characters.
Related questions
Q:
The Insurance Regulatory Information System (IRIS) is a standardized examination system used to measure the profitability of insurance companies.
Q:
Property-casualty insurers tend to have a higher level of liquidity risk than life insurers.
Q:
The largest property-casualty (PC) insurance companies have become less influential over the past decade.
Q:
In the case of an insurance company failure, policyholders immediately receive a payout of the cash surrender value of their policies.
Q:
As currently structured, contributions to a state-sponsored guarantee fund are collected only after the actual failure of an insurance company.
Q:
A permanent guarantee fund for the insurance industry does not exist.
Q:
The policy reserves on the liability side of the balance sheet of a life insurance company are estimated based on actuarial assumptions of expected future liability commitments on currently existing contracts.
Q:
Loss exposures faced by insurers in accident and health lines are more similar to those faced by traditional life insurance than by property-casualty insurance.
Q:
The two policy categories offered by property-casualty insurers that are most likely to be subject to rate regulation are
A. auto insurance and worker's compensation.
B. homeowner multiple peril and commercial multiple peril.
C. earthquake and flood.
D. surety bonds and financial guaranty.
E. product liability and farm owner multiple peril.
Q:
The McCarran-Ferguson Act of 1945
A. separated commercial banking from insurance activities.
B. mandated federal insurance company charters.
C. stipulated that insurance companies are to be regulated at the state level.
D. initiated a national insurance guaranty fund.
E. limited insurance company assets to low risk government securities.
Q:
The surrender value of an insurance policy is
A. the expected payment commitment on existing policy contracts.
B. a fund established and held separately from the company's other assets.
C. the cash value paid to the policyholder if the policy is terminated before it matures.
D. the same as the endowment payout.
E. the price at which the company may repurchase the policy.
Q:
Annuities offered by life insurance companies are a financial contract that
A. is used to build up a fund.
B. pays only fixed returns to groups of employees.
C. is used to liquidate a fund.
D. pays only variable returns to individuals.
E. None of the above are correct.
Q:
An insurance policy that often is the least expensive to the insured because of the policy does not include a savings plan is called
A. term life.
B. universal life.
C. whole life.
D. endowment life.
E. variable life.
Q:
An insurance policy that protects an individual over an entire lifetime as long as the premiums are paid is called
A. term life.
B. universal life.
C. whole life.
D. endowment life.
E. variable life.
Q:
Which of the following is NOT considered a trading activity of securities firms?
A. Position trading.
B. Pure arbitrage.
C. Liquidity trading.
D. Risk arbitrage trading.
E. Program trading.
Q:
A corporate venture capital firm
A. has publicly-traded common stock.
B. provides equity funds to companies that already have publicly traded common stock.
C. is a subsidiary of a nonfinancial corporation.
D. provides debt funding to only to established corporations.
E. is subject to more stringent disclosure requirements than other venture capital firms.
Q:
Which of the following would be a key area of activity for an investment bank specializing in the commercial side of the business?
A. Purchase of existing securities.
B. Sale of securities in the secondary market.
C. Brokerage of existing securities.
D. Underwriting issues of new securities.
E. All of the above.
Q:
Cash management accounts were an early attempt by commercial banks to provide investment banking services to individuals.
Q:
Market making involves creating a primary market in a financial asset.
Q:
A best-efforts offering of a security is more risky for an investment bank than a firm commitment offering.
Q:
Because the business of funds management generates fees based on the size of the pool of assets managed, the flow of income is more volatile than either investment banking function or the trading function.
Q:
The number of investment banks and securities firms expanded rapidly from 1980 to October 1987.
Q:
The Financial Services Modernization Act of 1999 and other regulatory changes have been the cause of the increase in interindustry mergers of investment banks and securities firms.
Q:
Securities trading and underwriting is a profit generating activity that requires FIs to hold an inventory of securities they trade.
Q:
As of March 2012, the payday loan industry was regulated at the federal level.
Q:
Business loans represent 60% of the loan portfolio of finance companies.
Q:
It is impossible for an individual to be approved for a finance company loan with a bankruptcy on their record.
Q:
Traditionally, motor vehicle loans and leases are the largest category of consumer loans for finance companies.
Q:
Wholesale loans are loan agreements between corporations and their customers at reduced interest rates.
Q:
Finance companies are subject to regulations that restrict the types of products and services they can offer to small business customers.