banks, savings and loan associations, mutual savings banks, and credit unions group of answer choices a. are no longer important players in financial intermediation. b. have been providing services only to small depositors since deregulation. c. have been adept at innovating in response to changes in the regulatory environment. all of the above. only a and c of the above.
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- The policy that requires regulator intervention when ____, and it was bank capital falls too low is introduced by the prompt corrective action; Financial Services Modernization Act of 1999 FDIC insurance; FDIC Improvement Act of 1991 prompt corrective action; FDIC Improvement Act of 1991 FDIC insurance; Financial Services Modernization Act of 1999Discuss the advantages and disadvantages of regulatory forbearance in banking. How useful has it been in mitigating COVID-19 stress on banks? Give some examples4. 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 has caused banks difficulty in estimating liquidity needs?A. competition for loans from other financial institutionsB. deregulation of interest rate ceilings on depositsC. competition for loans from nonfinancial institutionsD. a, b, and cWhich of the following regulatory restrictions is uniquely applicable for "critically undercapitalized" banks: OA. Cannot accept broker-placed deposits without regulatory approval O & Will be placed into conservatorship or receivership if it its capital level is not increased within a certain time limit. OC. Must have a Tier 1 to risk adjusted assets ratio of at least 3%. OD. Faces no significant regulatory restrictions O E. Has limits on dividends and management fees it is allowed to pay and limits on the maximum asset growth rate among other restrictionsBanks that are too-big-to-fail refers to: Question 6Answer a. Banks with multiple branches and a large number of depositors. b. Banks that are viewed by regulators as being too big to be closed and liquidated without imposing a systemic risk to the banking and financial system. c. Banks that are too profitable to declare bankruptcy. d. Any financial institution that accepts deposits from the general public
- Which one of the following statements is a guiding principle of financial regulation? Question 32Answer a. Regulatory measures on the senior management ensure that decisions are taken in the best interest of the bank. b. Innovation is to be discouraged in the wake of the sub-prime lending debacle. c. Strict monitoring is needed to prevent excessive profits. d. The financial regulations imposed should be proportional to the advantages that are anticipated from the regulations.Answer AsAp it's very urgentDeposit Insurance a. depositor indifference generates a moral hazard problem that encourages banks to engage in risky activities b. exists only in the USA, not in the oer countries. c. It is a privately owned insurance company. d. successfully helped US to overcome the problems in 1980's S&L crisis and 2008 Financial Crisis.
- Which of the following statements is INCORRECT ? Large investment banks finance most of their activities by using retail consumer deposits as the primary source of funds. Failure to monitor the actions of firms in a timely and complete fashion after purchasing securities in the firms exposes investors to agency costs. As a delegated monitor, a financial institution's actions reduce agency costs. Financial institutions provide economies of scale in transaction costsWhich of the following is NOT a criterion for evaluating bank liquidity used by regulators?a. availability of assets readily converted into cashb. the diversity of the bank's money market assetsc. the bank's formal and informal commitments for future lending or investmentsd. structure and volatility of deposits All of the following are common ratio measures of bank liquidity EXCEPT:a. loans/depositsb. loans/nondeposit liabilitiesc. unencumbered liquid assets/nondeposit liabilitiesd fixed assets/loans The quantity of deposit and nondeposit funds in a bank depends on all of the following EXCEPT:a. the Fed's monetary policy actionsb. the bank's financial strengthc. economic conditionsd. none of the aboveWhich of the following is NOT a criterion for evaluating bank liquidity used by regulators?a. availability of assets readily converted into cashb. the diversity of the bank's money market assetsc. the bank's formal and informal commitments for future lending or investmentsd. structure and volatility of deposits Choose one correct answer please.