Chapter 11 Test Bank

1. T/F The service sector employs more people than any other sector in the U.S. economy.
Answer: True (see page 586)

2. T/F The service sector accounts for more than half of the United States’ GDP.
Answer: False (see page 586)

3. T/F Online investing and banking are expected to more than double by 2005.
Answer: True (see page 591)

4. T/F Online stock trade execution is the most rapidly expanding online financial activity.
Answer: True (see page 590)

5. T/F Currently, the largest segment of the job recruitment market is the executive search segment.
Answer: False (see page 632)

6. T/F NetBank is one of the few Internet banks to operate profitably over several years.
Answer: True (see page 583)

7. T/F The financial services industry is the largest investor in information technology.
Answer: True (see page 588)

8. T/F There are more individuals banking online in United States than in Western Europe.
Answer: False (see page 591)

9. T/F In the United States, banks, insurance firms and brokerage firms are prohibited from having significant financial interests in one another.
Answer: False (see pages 593-4)

10. T/F Webvan is an example of a successful Internet-based delivery service.
Answer: False (see page 638)

11. The largest service industry within the service sector is: (a) Fire, Insurance, Real Estate services (b) Health services (c) Business services (d) Travel services
Answer: (a) (see page 587)

12. Which type of financial service provider traditionally has provided protection of assets? (a) banks (b) investment firms (c) credit card firms (d) insurance companies
Answer: (d) (see page 592)

13. E-loan.com is an example of: (a) an established lending firm moving into the online environment (b) a pure online mortgage banker (c) a mortgage service company (d) a mortgage broker
Answer: (b) (see page 607)

14. The Internet has resulted in lower search costs, increased price comparison and lower prices to consumers for which insurance product line? (a) automobile insurance (b) term life insurance (c) health insurance (d) property and casualty insurance
Answer: (b) (see page 609)

15. Which services segment has attracted the largest e-commerce audience? (a) online brokerage services (b) online banking services (c) online travel services (d) online career services
Answer: (c) (see page 613)

16. The largest component of the online travel services market is in terms of revenue is: (a) hotel reservations (b) car reservations (c) cruise/tour reservations (d) airline reservations
Answer: (d) (see page 618)

17. Which of the following is the world’s largest pure online bank? (a) NetBank.com (b) E*TradeBank.com (c) Egg.com (d) Juniper.com
Answer: (c) (see page 584) 18. All of the following are examples of transaction brokers except: (a) a stockbroker (b) a real estate agent (c) an accountant (d) an employment agency
Answer: (c) (see page 588)

19. All of the following services require extensive personalization except: (a) legal services (b) financial services (c) medical services (d) accounting services
Answer: (b) (see page 588)

20. The most popular online recruitment site in the United States is: (a) HotJobs.com (b) Monster.com (c) Jobline.com (d) CareerBuilder.com
Answer: (b) (see page 629)

21. All of the following are executive search sites except: (a) Futurestep.com (b) Leadersonline.com (c) CareerWeb.com (d) Execunet.com
Answer: (c) (see page 629)

22. In 2001, the largest online travel provider is: (a) Orbitz.com (b) Travelocity.com (c) Expedia.com (d) Hotwire.com
Answer: (b) (see page 620)

23. In 2001, the dominant real estate listing service on the Web is: (a) Homeadvisor.com (b) Homes.com (c) Homestore.com (d) Homegain.com
Answer: (c) (see page 613)

24. Yodlee is an example of: (a) a financial portal (b) an