DIS 4.4

overturned the section of the Banking Act of 1933 that prohibited commercial banks from selling insurance or performing the functions of investment banks. O The Sarbanes-Oxley Act of 2002 O The Securities and Exchange Act of 1934 O The Financial Services Modernization Act of 1999 O The Securities Act of 1933

In the US banking history, that separated the operations of commercial banks and those of investment bank is repealed by a. Sabox b. the Glass Steagll Act  c. Dodd-Frank Act  d. the Gramm-Leach-Bliley Act  e. Consumer Financial Protection Bureau         c       a       b       e       d

The Dodd-Frank Act: O A regulatory bill meant to guard against the irresponsibility that caused the subprime mortgage crisis. OA bill that imposed new, strict, regulations on mortgage companies and investment banks. O An act that dispersed additional funds to aid in the recovery of the troubled financial institutions (Fls) O Created a program that monitors both mortgage issuers and borrowers, preventing unethical and predatory lending. O Does all of the above

Which of the following regulatory events in the 20th century potentially influenced the financial sector? Passing of the Glass-Steagall Act Establishment of the Securities and Exchange Commission (SEC) Establishment of the Federal Reserve Banking System Repeal of the Glass-Steagall Act Securities Investor Protection Act passed

Only one statement is 100% correct. Which one? → A. State agencies charter and regulate national banks. B. The Federal Deposit Insurance Corporation (FDIC) is the oldest U.S. commercial bank regulators. < C. The Federal Reserve System (FRS) has regulatory power over nationally chartered banks and their holding companies and state banks that opt in to the FRS. < D. The Office of the Comptroller of the Currency (OCC) charters and regulates state banks.

Which of the following permitted banks the ability to sell insurance? O The Sarbanes-Oxley Act The Glass-Steagall Act O The Financial Services Modernization Act O The Financial Reform Act of 2010

4. Investment bank controversies Which of the following is true regarding the "revolving door" between the investment banking industry and the organizations tasked with regulating and overseeing investment banks? Check all that apply. The "revolving door" only goes one way. That is, former investment bankers often go on to work for government organizations, but government employees do not go on to work for investment banks. The "revolving door" only goes one way. That is, government employees often go on to work for investment banks, but former investment bankers do not go on to work for government organizations. The "revolving door" was largely a problem in the 1960's and does not pose any issues in today's financial industry. The "revolving door" can potentially create conflicts of interest among current and former employees of the investment banking industry.

Which of the following is an accurate description of a dual banking system? Government protection from losses may occur if a bank becomes insolvent or fails. There exists a system in which bank charters are granted by both the government and private licensing organizations. The government grants charters to banks. Government permission is needed to establish and operate a depository institution. Which of the following most accurately explains why the bank chartering system of the United States is known as the reason for a dual banking system? Society cannot allow just anyone to open a bank because banks have a lot of proprietary information. The government grants charters to banks. There exists a system in which bank charters are granted by both the government and private licensing organizations. Banks do not disclose to whom they have made loans and for how much.  

17. Which of the following is not an asset of a bank?a.business depositsb.consumer loansc.deposits in other banksd.government securitiese.All of the above are bank assets. 18. Unlike the United States, many countries grant their banks the authority fora.full merchant banking, including investment banking and ownership of companies to whichthey lend.b.deposit banking.c.forming bank holding companies.d.lending to foreign companies and countries.

Interstate banking regulations presently allow commercial banks to acquire other banks in their region of the country, but not to expand across the nation.    Group of answer choices: True False

In the US history, that separated the operations of commercial banks and those of investment bank is       Sarbox     Dodd-Frank Bill     The Glass Steagall Act     the Gramm-Leach-Bliley Act

15. In making loans to a single customer, commercial banks are not restricted to a maximum percentage of their capital, i.e. there is not a limit on how a bank to lend to a single customer. a. True b. False 16. The opening of a commercial bank in the United States a. requires a charter from the city in which they plan to operate requires a charter from a state or the federal government. b. c. None of these is correct d. always requires a charter from the federal government. 17. Current bank regulations: a. set requirements for the maximum amount of equity that banks can hold. b. None of the other answers are correct. c. impose standards for how liquid the bank is. d. involve a trade-off between the safety of the bank and the efficiency of bank operations. 18. The Basel framework recommends that banks maintain capital in proportion to their: a. None of the other answers is correct. b. total assets c. risk-weighted liabilities d. risk-weighted assets 19. The potential risk that financial…

2

rights reserved. Match each legislative act with its chief accomplishment. created an income tax to fund the government sought to outlaw business monopolies Federal Reserve Act Mann-Elkins Act Sherman Antitrust Act 16th Amendment granted the Interstate Commerce Commission control over railroad rates and telecommunications established a central banking system

(0)     What is true regarding the commercial banks that are a part of the Federal Reserve System? (Select one of the options) They have the same rights with respect to district feds as any shareholders do They receive payments in the form of dividends from the district Feds Their deposits are insured by the government They can influence the monetary policy inside the district where they operate

Discuss • What is financial market regulations?• How banks and non-banking financial institutions are regulated?• What is the purpose of financial regulation?• Select 1 country’s Banking Act or Financial Institutions Act in the caribbean): Provide an overview of the Act.Briefly state the purpose of the Act. Identify 3 core areas or aspects covered in the Act. Name the institution responsible for monitoring and implementing the Act you identified above and provide an overview of that institution

1 The most important exemption from the prospectus requirement are the "Accredited Investors" provisions in the Securities Act. Who are defined as Accredited Investors? Multiple Choice Banks and investment dealers. Individuals and their spouses owning net financial assets exceeding $1 million; and individuals who, either alone or with a spouse, have net assets of at least $5 million. Banks, investment dealers and governments. All of these are accredited investors. Governments.

Identify the financial regulations that led to consolidation in the domestic banking sector.（Be specific please)