Exam 11: Economic Analysis of Financial Regulation

When comparing the banking crisis in the United States to the crises in Latin America,cost to the taxpayers of the government bailouts was

In the early stages of the 1980s banking crisis,financial institutions were especially harmed by

Consumer protection legislation includes legislation to

During the 1960s,1970s,and early 1980s,traditional bank profitability declined because of

Since depositors,like any lender,only receive fixed payments while the bank keeps any surplus profits,they face the ________ problem that banks may take on too ________ risk.

With ________,firms value assets on their balance sheet at what they would sell for in the market.

Macroprudential supervision policies try to prevent a leverage cycle by changing capital requirements so that they ________ during an expansion and ________ during a downturn.

Savings and loan regulators allowed S&Ls to include in their capital calculations a high value for intangible capital called

The too-big-to-fail policy

The global financial crisis showed the need for increased financial regulation,however,too much or poorly designed regulation could

Agreements such as the ________ are attempts to standardize international banking regulations.

Banking crises have occurred throughout the world. What similarities do we find when we look at the different countries?

Who has regulatory responsibility when a bank operates branches in many countries?

Regulations designed to provide information to the marketplace so that investors can make informed decisions are called

FDICIA ________ incentives for banks to hold capital and ________ incentives to take on excessive risk.

One of the problems experienced by the savings and loan industry during the 1980s was

Currently,Fannie Mae and Freddie Mac are

To prevent bank runs and the consequent bank failures,the United States established the ________ in 1934 to provide deposit insurance.

The Basel Accord requires banks to hold as capital an amount that is at least ________ of their risk-weighted assets.

Because of asymmetric information,the failure of one bank can lead to runs on other banks.This is the