FIN 4323 Exam Question with Complete
Solutions
Commercial banks - Answers-Sell to deposit and make loans to businesses, individuals,
and institutions
Money center banks - Answers-Largest commercial banks based in leading financial
centers
Community Banks - Answers-Smaller, locally focused commercial and savings banks
Savings banks - Answers-Attract savings deposits and make loans to individuals and
families
Cooperative banks - Answers-Help farmers, ranchers, and consumers acquire goods
and services
Mortgage banks - Answers-Provide mortgage loans on new homes but do not sell
deposits
Investment banks - Answers-Underwrite issues of new securities on behalf of their
corporate customers
Merchant banks - Answers-Supply both debt and equity capital to businesses
Industrial banks - Answers-State chartered loan companies owned by other
corporations that provide credit and receive deposits
International banks - Answers-Commercial banks present in more than one nation
Wholesale banks - Answers-Larger commercial banks serving corporations and
governments
Retail banks - Answers-Smaller banks serving primarily household and small
businesses
Limited-purpose banks - Answers-Offer a narrow menu of services, such as credit card
companies and subprime lenders
Bankers bank - Answers-Supply services for example clearing checks and security
trading To banks
Minority banks - Answers-Focus primarily on customers belonging to minority groups
Solutions
Commercial banks - Answers-Sell to deposit and make loans to businesses, individuals,
and institutions
Money center banks - Answers-Largest commercial banks based in leading financial
centers
Community Banks - Answers-Smaller, locally focused commercial and savings banks
Savings banks - Answers-Attract savings deposits and make loans to individuals and
families
Cooperative banks - Answers-Help farmers, ranchers, and consumers acquire goods
and services
Mortgage banks - Answers-Provide mortgage loans on new homes but do not sell
deposits
Investment banks - Answers-Underwrite issues of new securities on behalf of their
corporate customers
Merchant banks - Answers-Supply both debt and equity capital to businesses
Industrial banks - Answers-State chartered loan companies owned by other
corporations that provide credit and receive deposits
International banks - Answers-Commercial banks present in more than one nation
Wholesale banks - Answers-Larger commercial banks serving corporations and
governments
Retail banks - Answers-Smaller banks serving primarily household and small
businesses
Limited-purpose banks - Answers-Offer a narrow menu of services, such as credit card
companies and subprime lenders
Bankers bank - Answers-Supply services for example clearing checks and security
trading To banks
Minority banks - Answers-Focus primarily on customers belonging to minority groups
