The act that allowed bank holding companies to acquire nonbank depository institutions and convert them to branches is: the Financial Institutions Reform, Recovery and Enforcement Act. the Riegle - Neal Insterstate Banking and Branching Effciency Act. None of the options are correct. the National Banking Act. the Garn - St Germain Act.

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 1999

To minimize systemic risk in the banking system, which prudential measure has been put in place in the General Banking Law and the Manual of Regulations for Banks to safeguard them from too large a risk exposure to a particular borrower or corporate group?*   Reserves Single Borrower's Limit DOSRI (directors, officers, stockholders and their related interests) Limit Equity Investment Limit Loan Loss provisioning

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

The government enforces banking rules and regulations through an elaborate process called supervision? Overdraft Overview Organization Oversight

What is evergreening in banking and why it may arise as an equilibrium choice of banks. Carefully explain all relevant concepts and mechanisms. Additionally discuss how much of a problem this may present in the aftermath of a banking crisis.

What are some of the ways that banks can borrow short-term funds when they need "liquidity"?(Select all that apply; three of the answers below are correct.) Reference: Chapters 11 & 12    They can borrow directly from the Securities & Exchange Commission through the "regulatory" market.        They can borrow from the Department of Treasury through the "Treasury" window.        They can borrow another bank's reserves through the "fed funds" market.        The can engage in a "sale & repurchase agreement" (or "repo") by selling some of their securities to another financial insitution and promising to buy them back the next day.        They can borrow directly from the Federal Reserve through the "discount window".

Which 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 above

The term ‘loanable funds' refers to: a. only those funds loaned by one bank to another bank. b. only those funds loaned to banks by the public. c. only those funds loaned to banks by the central bank. d. all those funds changing hands between the lenders and borrowers in the financial markets.

What special problem do off-balance-sheet activities present to bank regulators, and what have they done about it?