Question 1

Which banking act removed deposit rate ceilings?

Accepted Answer

A)  McFadden Act
B)  Glass-Steagall Act
C)  DIDMCA
D)  Garn-St. Germain Act

Question 2

National banks are regulated by ____, and state banks are regulated by ____.

Accepted Answer

A)  the Comptroller of the Currency; their state agency
B)  the Comptroller of the Currency; the Comptroller of the Currency
C)  their state agency; their state agency
D)  their state agency; the Comptroller of the Currency

Question 3

Which of the following is not a main deregulatory provision of Depository Institutions Deregulation and Monetary Control Act of 1980?

Accepted Answer

A)  phase-out of deposit rate ceilings
B)  allowance of checkable deposits for all depository institutions
C)  new lending flexibility of depository institutions
D)  allowance of interstate banking for depository institutions in most states

Question 4

When a bank holds a lower level of capital, a given dollar level of profits represents a lower return on equity.

Accepted Answer

A) True 
 B)False

Question 5

The moral hazard problem is minimized when deposit insurance premiums are

Accepted Answer

A)  zero (not imposed by the FDI
C)  .
B)  the same percentage of assets for all banks.
C)  set at a fixed percentage of assets for large banks, and is zero for small banks.
D)  set at a percentage of assets that is based on the bank's risk level.

Question 6

The uniform global capital requirements mandated a minimum level of Tier 1 capital, which primarily consists of funds obtained from

Accepted Answer

A)  issuing commercial paper and bonds.
B)  retaining earnings and issuing commercial paper.
C)  retaining earnings and issuing common stock.
D)  issuing bonds and common stock.

Question 7

There is much emphasis by regulators on the bank's sensitivity to interest rate movements, since many banks have liabilities that are repriced more frequently than their assets and are adversely affected by rising interest rates.

Accepted Answer

A) True 
 B)False

Question 8

Federal deposit insurance

Accepted Answer

A)  existed since the 1800s.
B)  was created in 1933.
C)  was created after World War II.
D)  was created in 1960.

Exam 18: Bank Regulation

The uniform global capital requirements mandated a minimum level of Tier 1 capital, which primarily consists of funds obtained from

Correct Answer
verified

Which banking act removed deposit rate ceilings?

Correct Answer
verified

When a bank holds a lower level of capital, a given dollar level of profits represents a lower return on equity.

Correct Answer
verified

Federal deposit insurance

Correct Answer
verified

The moral hazard problem is minimized when deposit insurance premiums are

Correct Answer
verified

Which of the following is not a main deregulatory provision of Depository Institutions Deregulation and Monetary Control Act of 1980?

Correct Answer
verified

National banks are regulated by , and state banks are regulated by .

Correct Answer
verified

There is much emphasis by regulators on the bank's sensitivity to interest rate movements, since many banks have liabilities that are repriced more frequently than their assets and are adversely affected by rising interest rates.

Correct Answer
verified

Exam 18: Bank Regulation

The uniform global capital requirements mandated a minimum level of Tier 1 capital, which primarily consists of funds obtained from

Correct AnswerverifiedShow Answer

Which banking act removed deposit rate ceilings?

Correct AnswerverifiedShow Answer

When a bank holds a lower level of capital, a given dollar level of profits represents a lower return on equity.

Correct AnswerverifiedShow Answer

Federal deposit insurance

Correct AnswerverifiedShow Answer

The moral hazard problem is minimized when deposit insurance premiums are

Correct AnswerverifiedShow Answer

Which of the following is not a main deregulatory provision of Depository Institutions Deregulation and Monetary Control Act of 1980?

Correct AnswerverifiedShow Answer

National banks are regulated by ____, and state banks are regulated by ____.

Correct AnswerverifiedShow Answer

There is much emphasis by regulators on the bank's sensitivity to interest rate movements, since many banks have liabilities that are repriced more frequently than their assets and are adversely affected by rising interest rates.

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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National banks are regulated by , and state banks are regulated by .

Correct Answer
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Correct Answer
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