Test Bank For Financial Institutions Management 4th Edition by Saunders

Chapter 02 Testbank

1.

1. A. Non-bank depository institutions exclude building societies and credit unions.
   B.  A non-bank depository institution meets the legal definition of a bank.
   C.  Building societies are the same as credit unions.
   D.  A non-bank depository institution may be a building society or a credit union and a non-bank depository institution undertakes many of the same activities of a bank without meeting the legal definition of a bank.

1. A. Authorized depository institutions are those that have been granted an authority by the RBA to operate in Australia.
   B.  Authorised depository institutions are those that have been granted an authority by APRA to operate in Australia.
   C.  Authorised depository institutions are those that have been granted an authority by the Australian government to operate in Australia.
   D.  Authorised depository institutions are those that have been granted an authority by ASIC to operate in Australia.

1. A. Building societies are depository institutions.
   B.  Building societies usually operate on a cooperative basis.
   C.  In case of building societies the depositors are also members of the society.
   D.  All of the listed options are correct.

1. A. banks, building societies, credit unions
   B.  banks, building societies
   C.  banks, credit unions
   D.  only banks