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

A banks' poor or mediocre Community Reinvestment Act (CRA) record could be held against it by community activists if the bank needed regulatory approval for a merger or acquisition.

All banks in the United States today pay the same insurance fees.

The most regulated of all financial institutions typically are:

Using the the description or the definition below, identify each of the key terms and concepts. a. Charter and supervise banks headquartered in a given state. b. Created by Congress originally to issue currency and coin and protect the U.S. dollar in international markets. c. Charters and supervises national banks. d. Government enforcement of rules applying to financial-service businesses.

The activities of U.S. banks overseas are regulated and supervised by the:

On the global stage, U.S. banks may be at a regulatory disadvantage due to:

In the U.S. each depositor is limited to a maximum of $100,000 in federal deposit insurance coverage for all of his or her deposits, both ordinary and retirement accounts, at an insured depository institution.

The policy of allowing an insolvent or deeply troubled financial institution to continue to operate rather then being closed down by regulators is called:

The Financial Services Modernization (Gramm-Leach-Bliley) Act allows commercial banks to affiliate with insurance companies and investment banks by creating financial-services holding companies (FHCs).

The Federal Deposit Insurance Reform Act of 2005 allows the FDIC to set the deposit insurance reserve ratio:

Money market fund investments must be made, 95 percent or higher, in top-quality (top-credit-rated) securities.

According to the ____ the U.S. Congress stipulated that no bank holding company could acquire more than 5 percent of the voting stock of banks located outside its home state without express permission from the state entered.

The terms of policies sold by insurance companies must be approved by state insurance commissions.

Bank holding companies in the U.S. can set up a subsidiary to offer discount brokerage services to customers, but not full-service security brokerage services.

The chief examining agency for U.S. savings and loan associations is the:

Under what rule or regulation can a financial institution or other security-issuing firm in the United States file a statement of intention to sell new securities up to two years before those securities are actually brought to market?

Insider trading activities are investigated in the United States predominantly by the:

Under U.S. law Penny Benny must insure all defined-contribution pension plans.

The creation of money is closely associated with inflation.

A single banking organization operating in the United States can acquire no more than ____ percent of nationwide deposits.