Question 1

The deposit insurance programs of the National Credit Union Administration (NCUA) is modeled after the programs offered by the FDIC.

Accepted Answer

A) True 
 B)False

Question 2

Which of the following is NOT a social welfare effect of bank runs?

Accepted Answer

A) Discipline of incompetent managers. 
B) Negatively affecting the payments function of DIs. 
C) Reduced availability of credit. 
D) Potential decrease in the money supply. 
E) Inability to perform intergenerational wealth transfers. 
A) Discipline of incompetent managers. 
B) Negatively affecting the payments function of DIs. 
C) Reduced availability of credit. 
D) Potential decrease in the money supply. 
E) Inability to perform intergenerational wealth transfers.

Question 3

The required contribution from surviving insurers to protect policyholders of failed insurance companies usually is on a pro rata amount based on the relative asset size of the surviving company.

Accepted Answer

A) True 
 B)False

Question 4

Discount window loans from the Federal Reserve are used as

Accepted Answer

A) Non-permanent short-term funds. 
B) Funds to meet seasonal liquidity needs. 
C) Funds to meet unexpected deposit drain. 
D) Funds to meet reserve requirement. 
E) All of the above. 
A) Non-permanent short-term funds. 
B) Funds to meet seasonal liquidity needs. 
C) Funds to meet unexpected deposit drain. 
D) Funds to meet reserve requirement. 
E) All of the above.

Question 5

The risk of moral hazard increases when capital levels are low.

Accepted Answer

A) True 
 B)False

The deposit insurance programs of the National Credit Union Administration (NCUA) is modeled after the programs offered by the FDIC.

Which of the following is NOT a social welfare effect of bank runs?

The required contribution from surviving insurers to protect policyholders of failed insurance companies usually is on a pro rata amount based on the relative asset size of the surviving company.

Discount window loans from the Federal Reserve are used as

The risk of moral hazard increases when capital levels are low.

Why Are Financial Institutions Special

Financial Services: Depository Institutions

Financial Services: Finance Companies

Financial Services: Securities Brokerage and Investment Banking

Financial Services: Mutual Funds and Hedge Funds

Financial Services: Insurance

Risks of Financial Institutions

Interest Rate Risk I

Interest Rate Risk II

Credit Risk: Individual Loan Risk

Credit Risk: Loan Portfolio and Concentration Risk

Liquidity Risk

Foreign Exchange Risk

Sovereign Risk

Market Risk

Off-Balance-Sheet Risk

Technology and Other Operational Risks

Liability and Liquidity Management

Capital Adequacy

Product and Geographic Expansion

Futures and Forwards

Options, Caps, Floors, and Collars

Swaps

Loan Sales

Securitization

Filters

Exam 19: Deposit Insurance and Other Liability Guarantees

The deposit insurance programs of the National Credit Union Administration (NCUA) is modeled after the programs offered by the FDIC.

Which of the following is NOT a social welfare effect of bank runs?

The required contribution from surviving insurers to protect policyholders of failed insurance companies usually is on a pro rata amount based on the relative asset size of the surviving company.

Discount window loans from the Federal Reserve are used as

The risk of moral hazard increases when capital levels are low.

Why Are Financial Institutions Special

Financial Services: Depository Institutions

Financial Services: Finance Companies

Financial Services: Securities Brokerage and Investment Banking

Financial Services: Mutual Funds and Hedge Funds

Financial Services: Insurance

Risks of Financial Institutions

Interest Rate Risk I

Interest Rate Risk II

Credit Risk: Individual Loan Risk

Credit Risk: Loan Portfolio and Concentration Risk

Liquidity Risk

Foreign Exchange Risk

Sovereign Risk

Market Risk

Off-Balance-Sheet Risk

Technology and Other Operational Risks

Liability and Liquidity Management

Capital Adequacy

Product and Geographic Expansion

Futures and Forwards

Options, Caps, Floors, and Collars

Swaps

Loan Sales

Securitization

Filters