Answered: 2. Which bank regulatory agency has…

2. Which bank regulatory agency has the sole regulatory authority over bank holding companies? Question 2 options: a) the Federal Reserve System b) the FDIC c) the FHLBS

ECON MACRO

5th Edition

ISBN:9781337000529

Author:William A. McEachern

Publisher:William A. McEachern

Chapter13: Money And The Financial System

Section: Chapter Questions

Problem 4.11P

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Concept explainers

Moral Hazard

The moral is a person's behavior towards himself /herself, society, organization, and others. Hazard is something that is happening and is not good. A person may be morally good or bad. It depends on his attitude, ethics, integrity, and values. A person may have the highest reverence for money to that for the truth. In this case, the person may lie and it is said that the person is morally bad.

Question

Which bank regulatory agency has the sole regulatory authority over bank holding companies?

Question 2 options:

a)	the Federal Reserve System

the FDIC

the FHLBS

d)	the Comptroller of the Curren

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19. Which of the following is NOT an entity of the Federal Reserve System? Question 19 options: a) the Board of Governors b) Federal Reserve Banks c) the Comptroller of the Currency d) the Federal Open Market Committee
1. Methods used by central bank to control money supply in the economy
5
6. An important routine function of the Federal Reserve Bank is to: A. supervise the liquidation of the assets of bankrupt state banks. B. help large commercial banks develop correspondent relationships with smaller commercial banks. C. advise commercial banks as to the most profitable ways of reinvesting profits. D. provide facilities by which commercial banks and thrift institutions may collect checks. E. All of the above
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35. "Too-big-to-fail" A) is a good policy because it ensures that large banks will not go out of business. B) helps reduce moral hazard in banking. C) is a consequence of safety net policies that encourage larger banks to take on more risk. D) has been an issue in the U.S. banking system since the National Bank Act of 1863. 36. The reduction in the number of U.S. banks that has occurred since the mid 1990's has been due primarily to A) bank failures from increased competition. B) voluntary bank mergers to take advantage of cost efficiencies. C) the closing of banks by federal regulators. D) elimination of state banks since all banks must now be nationally chartered. 37. Capital requirements for banks A) are specified by the Glass-Steagall act of 1933 B) increase moral hazard in banking. C) encourage banks to limit their holding of risky assets by putting some of the banks' own money at risk. D) specify the type of collateral (capital) that can be accepted to back up a bank loan. 38.…
6. Which of the following instruments is not used by the Federal Reserve to change the money supply? a) the discount rate (b) the required reserve ratio (c) the federal tax code (d) open market operations
What is the role of the Federal Reserve in the United States? A) To provide legal advice to financial institutions B) To conduct monetary policy C) To insure bank deposits D) To offer consumer loans Don't use chatgpt or other ai tool. If you know correct answer then attempt if you gave wrong answer I will give 10 dislikes and more from my friends account
26. Compared to commercial banks and thrift institutions, finance companies are Question 26 options: a) heavily regulated. b) able to attract small depositors. c) prevented from making relatively small loans. d) virtually unregulated.
Part d
The following are protective mechanisms that have been developed by regulators to promote the safety and soundness of the banking system EXCEPT: Select one: a. encouraging banks to produce timely accounting statements and reports. b. encouraging banks to limit lending to a single customer to no more than 10% of capital. c. the periodic monitoring of banks. d. encouraging banks to rely more on deposits rather than debt or capital as a cushion against failure. e. the provision of deposit insurance.