单选题
About one commercial bank out of every four has a trust department that provides specialized fiduciary services for its customers. To engage in the trust business, a bank must obtain from its chartering agency trust powers that enable it to offer these specialized financial services. The following sections provide an introduction to the trust function.
With roughly 75 percent of banking-industry participants not engaged in trust operations, trust services obviously play a somewhat limited role in the industry. Since 1981 the percentage contribution of these revenues to total operating income and total assets has been increasing after declining since 1975. As of year-end 1983, trust income was $ 4.2 billion and amounted to 1.74 percent of total operating income and 0. 185 percent of total bank assets. Over the eight-year period 1975 to 1983, trust income grew at a compound annual rate of 12.78 percent compared to 17.42 percent for total operating income and 11.81 percent for total assets.
Trust departments generate revenue by charging fees for the services they provide. In the early days of the trust business, these fees usually were calculated as a percentage of income earned from trust assets. Today, most fee income is based upon principal value or a combination of principal value and income. To illustrate, a fee schedule based upon principal value for personal trust accounts might range from 1 percent to 25 percent annually, depending upon the size of the account. One of the controversial areas in trust management is how to measure fee income.
The service objectives of trust and agency relationships involve five major operations: 1) recordkeeping, 2) safekeeping, 3) personal and financial counseling, 4) investing, and 5) control of assets.
Personal trusts and employee-benefit accounts are the major business lines of trust departments, as of December 31, 1980, these two lines accounted for $ 440 billion or 77 percent of total trust assets of $ 571 billion. In each of the major business lines, common stocks are the major investment vehicle, as they account for roughly 48 percent or total trust assets. Personal trusts have the highest proportion of assets in common stocks at 56 percent.

单选题 ______ Most small-sized banks usually have a trust department.

单选题 ______ Trust services occupy a very important position in the banking industry.

单选题 ______ Nowadays, banks charge fees for the trust services they provide which were counted as part of the earnings from trust assets.

单选题 ______ The trust service operations include safekeeping, counseling and investing etC.

单选题 ______ In personal trusts and employee-benefit accounts of trust departments during the 1980s, common stocks are the major investment vehicle.