FIN 350 Week 9 Quiz – Strayer
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Quiz
8 Chapter 18 and 19
Bank
Regulation
1. Deposit
insurance has a limit of:
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a.
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$10,000.
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b.
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$25,000.
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c.
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$100,000.
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d.
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$250,000.
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2. The
opening of a commercial bank in the United States
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a.
|
does not require a charter.
|
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b.
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always requires a charter from a state government.
|
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c.
|
always requires a charter from the federal
government.
|
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d.
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requires a charter from a state or the federal
government.
|
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e.
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requires a charter from both the state and federal
government.
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3. Commercial
banks that are not members of the Federal Reserve System ____ borrow from the
Fed, and ____ subject to the Fed's reserve requirements.
|
a.
|
may; are
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b.
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may; are not
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c.
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may not; are not
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d.
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may not; are
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4. National
banks are regulated by ____, and state banks are regulated by ____.
|
a.
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the Comptroller of the Currency; their state
agency
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b.
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the Comptroller of the Currency; the Comptroller
of the Currency
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c.
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their state agency; their state agency
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d.
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their state agency; the Comptroller of the
Currency
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5. All
Fed member banks must hold
|
a.
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private insurance on deposits.
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b.
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FDIC insurance on deposits.
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c.
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both FDIC and private insurance on deposits.
|
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d.
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none of the above
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6. Commercial
banks ____ restricted to a maximum percentage of their capital to loan to a
single customer, and ____ allowed to use borrowed or deposited funds to
purchase common stock.
|
a.
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are; are
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b.
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are; are not
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c.
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are not; are
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d.
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are not; are not
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7. Banks
commonly use depositor funds to invest in stocks.
a.
True
b.
False
8. An
"off-balance-sheet commitment" that provides the bank's guarantee on
the financial obligations of a borrower to a specific party is a
|
a.
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standby letter of credit.
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b.
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federal funds agreement.
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c.
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repurchase agreement.
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d.
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discount window agreement.
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9. The
Depository Institutions Deregulation and Monetary Control Act of 1980 allowed
banks to set their own
|
a.
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reserve requirements.
|
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b.
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capital ratios.
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c.
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interest rates on savings deposits.
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d.
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corporate loan interest rates.
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