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

The ____ brought foreign banks operating in the U.S. under federal regulation for the first time.

In the United States most credit unions have state charters rather than federal charters.

Regulation of financial institutions is usually justified by governments because of a need to:

Loss of public confidence in the financial system would slow the growth of the economy.

There are no absolutely irrefutable arguments justifying the regulation of financial institutions.

The Employee Retirement Income Security Act (ERISA) grants employees in the U.S. the right to join a pension program in most cases after ______ year(s) on the job.

The Bank Insurance Fund, BIF and Savings Association Insurance Fund, SAIF were merged into one entity, the Deposit Insurance Fund (DIF).

Regulation is often justified as the most direct way to aid so-called "disadvantaged" sectors of the economy, such as new home buyers, farmers and small businesses.

A national bank is declared insolvent and closed in the United States by the:

A savings and loan association holding a minimum of 65 percent of its total assets in mortgage-related investments or other qualified assets is known as a/an:

The Federal Deposit Insurance Reform Act of 2005 allows the boards of the FDIC and the National Credit Union Administration (NCUA) starting in 2010 to adjust deposit insurance coverage for inflation every:

Under the terms of the Basle Agreement commercial and consumer loans have a risk weight of:

Using the the description or the definition below, identify each of the key terms and concepts. a. Monitors the activities of security brokers, dealers and investment institutions. b. Granted the FDIC additional borrowing authority. c. Deregulated the depository institutions' sector.

The FDIC Improvement Act requires riskier, inadequately capitalized U.S. banks to pay higher deposit insurance fees.

Savings banks are not permitted to convert from mutual to stockholder form in the United States, but savings and loans can do so with federal regulatory agency approval.

Deregulation could bring about decreased profits for financial institutions.

Capital limits how fast each financial institution can grow.

The first banking organization in the U.S. granted the power to underwrite corporate stock issues in the period after passage of the Glass-Steagall Act was:

The maximum insurance limit on qualified retirement deposits was raised from $100,000 to:

One of the most important functions of the FDIC is to act as a check on state banking commissions.