Exam 17: The Impact of Deregulation and Regulation on Financial Institutions and Banking Industry in the United States

In the United States banking is more heavily regulated than is true in most other industrialized countries.

According to the ____ nonbank businesses acquired by bank holding companies must be "closely related to banking."

Bank mergers cannot be approved in the U.S. even if competition is only slightly damaged.

The public disclosure of interest earned and fees charged on deposit services was mandated in the U.S. by passage of the:

Regulation tends to result in an increased market share for the regulated industry and a smaller market share for unregulated firms offering the same products or services.

The SEC is governed by five commissioners who are appointed by the President of the United States for five-year terms.

SAIF has reached the insurance coverage goal mandated by the U.S. Congress in the Financial Institutions Reform, Recovery and Enforcement Act.

As a result of a recent Supreme Court ruling national banks are permitted to market annuities.

All bank holding company activities in the United States are regulated and examined by the:

The policy of "prompt corrective action" was adopted in the United States with passage of the:

According to a recent study of the banking industry, regulatory costs:

Deregulation of a financial service industry could usher in greater risk and lead to more business bankruptcies.

The primary federal regulator of money market mutual funds in the United States is the:

Savings and loan associations can borrow emergency funds from the Federal Home Loan banks but not from the Federal Reserve Banks.

Commercial banks are not allowed to sell mutual fund shares in the same physical area as they sell deposits, for fear of taking stable deposits out of the banking system.

The FDIC acts as receiver for all failed national banks in the U.S., but not for failed state-chartered banks who usually have a private receiver appointed by the state banking commission.

Governments frequently regulate financial institutions to assure that financial services needed by governments will continue to be provided.

Under the terms of the FDIC Improvement Act of 1991 the goal of the FDIC is to have a pool of insurance reserves backing the deposits of federally insured banks and thrifts that equals at least ____ percent of all insured deposits.

The US deposit insurance limit was set in 1980 and there have been recent calls to raise the deposit insurance limit from the current $200,000.

According to the ____ bankers must make an affirmative effort to serve all segments of their trade territory and disclose to the public their community service performance ratings.