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299. H & Q Importers arranged to have a French winery ship a large quantity of fine wine to
the United States. By signing a(n) ______________ H & Q authorized its bank to make full payment
to the French winery if and when the wine arrives at the H & Q warehouse in Boston.
300. Alan works as a loan officer for a major U.S. commercial bank, specializing in
international loans. When considering loans to governments and businesses in other nations,
Alan:
301. The Fed announces that it intends to implement policies to increase interest rates. Which
of the following correctly identifies the most likely result of higher U.S. interest rates?
302. It's no secret these days that the People's Bank of China is fat with cash from the
increasing rate of Chinese exporting. As a smart player on the global stage, which of the following
strategic decisions will the People's Bank of China probably make on a daily basis?
303. The World Bank's mission is to lend money to developing nations to help boost their
economic development in various industries. Since its inception, the World Bank has taken
significant criticism of its programs. Farmers in a cooperative in the developing nation of Urozil
have benefited by World Bank loans. Most recently, however, their processing facilities that
employ several laborers are taking criticism from human rights organizations. After studying this
chapter, which of the following is a common criticism of these groups?
Mini-Case
The Bank of Bramblewood survived the Great Depression through the dedication, hard work, and
conservative practices of its first president, Red E. Kash. Indeed, Red's personal drive and
business skills helped the Bank of Bramblewood thrive during his 50-year tenure as president.
After his retirement his granddaughter, Patty, took a position with the bank. Patty inherited her
grandfather's business skills and by 1994 she had risen to become the second member of the
Kash family to head the bank.
Patty admits she owes a great deal to her grandfather's leadership and advice, but she also
quickly points out that the banking industry has changed significantly since Red retired. Patty
graduated from college with a degree in finance, and also holds several certifications with the
American Institute of Banking. "What Granddad achieved during his era was truly remarkable,"
Patty points out. "But times have changed, and banking regulations and bank competitors have
certainly changed. If we hope to prosper in this century we have to adjust to new competition,
learn to work with new technologies, and take advantage of new opportunities. The Bank of
Bramblewood has always operated for the benefit of our customers and we will continue to do
so. But we must serve them more efficiently and creatively than in the past."
304. During Red's time as head of the Bank of Bramblewood, the bank offered three services:
time deposits, demand deposits, and home and business loans. Under Patty's leadership, the
bank offers those same services, a variety of investment opportunities such as mutual funds and
bonds, and ___________ through the Internet, which supports a number of services such as
paying bills directly from customers' accounts, direct deposit, and transferring money.
305. Since the Great Depression and still today, the Bank of Bramblewood has the FDIC
designation. This means:
306. The Bank of Bramblewood promotes a sustainability initiative encouraging all
transactions increasingly to be paperless. Each time the bank issues checks or sends out a paper
statement, it includes a promotion asking customers to support methods that eliminate
paperwork. The bank encourages customers to use debit cards, smart cards, direct deposit and
direct payments, as well as online statement retrieval. All of these tools are used in conjunction
with the bank's _______________.
307. Under Patty's leadership the Bank of Bramblewood would like to increase its loans to
customers, but its resources are currently limited by a high reserve rate. As a Federal Reserve
member bank, it will borrow additional funds from the Fed and charge its customers an interest
rate that is higher than the _______________.
308. As the bank has grown and expanded to other towns in its region, several of its business
customers are participating in global trade. Which of the following services provided by the bank
would help companies conduct international business?
309. Describe and compare the three major types of organizations that make up the U.S.
banking system: commercial banks, savings and loan associations, and credit unions.
310. Discuss the methods the Fed uses to enact monetary policy and provide an explanation
of the effects these methods have on the supply of money.
311. Compare and contrast the functions of the World Bank and the International Monetary
Fund.
312. Identify and discuss the tools and products that electronically transfer funds.
