Exam 15: The Regulation of Markets and Institutions

The minimum-leverage-ratio approach to capital adequacy requirements

The behavior of many savings-and-loans in the 1980s appears to be evidence __________ the existence of __________ problem in deposit insurance.

The Glass-Steagall Act became law in the

A bank has total assets of $3,000,000. Of these assets, $200,000 are cash and $300,000 are Treasury securities. Furthermore, the bank holds municipal revenue bonds of $600,000, residential mortgages of $1,000,000, and consumer and commercial loans of $900,000. This bank's risk-adjusted assets are

For state nonmember banks, the "primary" federal regulator is the

In bank regulation in the United States there is a strong emphasis on

The FDIC handles most bank failures by the purchase and assumption method because

The __________ is a regulator of financial markets.

It is estimated that approximately __________ percent of U.S. depositors have their deposits fully federally insured.

For federally chartered banks, the "primary" federal regulator is the

This basic pattern emerges in the United States: financial institutions are more heavily regulated

Among state member and national banks, __________ have federal deposit insurance through the FDIC.

The large number of bank failures in the 1980s compared to the number of failures in earlier decades appears to be evidence __________ the existence of __________ problem in deposit insurance.

All __________ are required to be insured by the Federal Deposit Insurance Corporation.

Today, __________ state banks are members of the Federal Reserve System.

Savings-and-loans were originally federally insured through the

The current level of deposit insurance is

Among the state nonmember banks, __________ have federal deposit insurance through the FDIC.

The motivation behind mutual fund regulation is protection of individual investors through

Behind the Glass-Steagall Act was the feeling that __________ is too risky for commercial banks.