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:
a.
$10,000.
b.
$25,000.
c.
$100,000.
d.
$250,000.


                                          
          
          

     2.   The opening of a commercial bank in the United States
a.
does not require a charter.
b.
always requires a charter from a state government.
c.
always requires a charter from the federal government.
d.
requires a charter from a state or the federal government.
e.
requires a charter from both the state and federal government.


                                          
          


     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
b.
may; are not
c.
may not; are not
d.
may not; are


                                          
          


     4.   National banks are regulated by ____, and state banks are regulated by ____.
a.
the Comptroller of the Currency; their state agency
b.
the Comptroller of the Currency; the Comptroller of the Currency
c.
their state agency; their state agency
d.
their state agency; the Comptroller of the Currency


                                          
          
          

     5.   All Fed member banks must hold
a.
private insurance on deposits.
b.
FDIC insurance on deposits.
c.
both FDIC and private insurance on deposits.
d.
none of the above


                                          
          
          

     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.
are; are
b.
are; are not
c.
are not; are
d.
are not; are not


                                          
          


     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.
standby letter of credit.
b.
federal funds agreement.
c.
repurchase agreement.
d.
discount window agreement.


                                          
          
          

     9.   The Depository Institutions Deregulation and Monetary Control Act of 1980 allowed banks to set their own
a.
reserve requirements.
b.
capital ratios.
c.
interest rates on savings deposits.
d.
corporate loan interest rates.


                                          
          
          


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