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Exam I FIN 3770_Fall2024_f2f.xlsx

What is the main purpose of index funds? How do index funds differ from equity mutual funds? 

The ROA for financial institutions such as banks is typically quite low compared to nonfinancial firms. Why? With such low ROAs, how can banks attract stockholders?

What is an annuity? What are the key differences between life insurance and buying an annuity? 

Who were the five largest investment banks at the beginning of 2008 and what happened to their existence by the end of 2008? Please list the names of these five largest investment banks and discuss what type of businesses they are now? 

What types of firms are called securities firms? Why is ownership capital a more important measure of the size of a securities firm than the amount of total assets? What other measures would be useful to estimate their size, given the diversity of this industry?

What is the significance of the Bank Holding Company Act of 1956? What are some important provisions of this act?

Who are Actuaries? How can they help in solving the adverse selection problem in life insurance underwriting?

The American Bankers Association and others are seeking to limit growth of credit unions. What is the basis for the bankers’ concern? What does the credit union industry argue? What kind of limits on credit unions are the bankers seeking?

What are the three major types of finance companies? What types of customers does each of them serve? Discuss.