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

A commercial bank has the following components in its capital account: How much tier-one (or core) capital does this bank have? Tier-two capital?

The regulatory dialectic concept states that regulation of financial-service companies tends to lead to innovations in new services and to financial institutions aggressively looking for ways to lower their operating costs.

Each business affiliated with a financial holding company is regulated and supervised by its traditional functional regulator.

Reserve requirements on deposits held by all depository institutions in the U.S. are set by the FDIC.

Under what law is investment fraud and the intentional deception of investors outlawed in the United States?

A bank covered by the terms of the Basle Agreement can count tier two items as meeting its capital requirements only up to the amount of its tier one capital.

Which of the following market data items are regulators likely to watch?

Banking companies in the United States are allowed to underwrite and distribute mutual fund shares to their customers.

Supervision of foreign banks operating in the United States is vested in the Office of the Comptroller of the Currency; a part of the U.S. Treasury Department.

Some countries do not have bank deposit insurance. Instead, the common practice in the event of bank failure is to:

Under the terms of the Basle Agreement banks in countries covered by this agreement must hold a total capital to total risk-weighted assets and other related risk-exposed items of:

Due to the recent credit crisis of 2007-2009, the deposit insurance limit has been temporarily increased to:

Governments willing to impose sufficiently strict regulations can completely remove risk for savers.

The regulation of financial institutions is:

The federal law that prohibited savings and loans from buying junk bonds and required savings and loans to focus the majority of their lending on the housing industry was the:

The Credit Card Accountability, Responsibility, and Disclosure Act of 2009 increases the punishment on credit card defaults by card holder.

The Bank Insurance Fund (BIF) and Savings Association Insurance Fund (SAIF) were merged into one entity, which is the:

Under the terms of the Riegle-Neal Interstate Banking Act an individual state can block interstate branching, but not interstate acquisitions of banks by bank holding companies.

The maximum insurance limit on qualified retirement deposits was raised from $100000 to $500,000.

In the United States the ____ insures the pension benefits of about 40 million U.S. workers who belong to defined-benefit pension programs.