Which mechanisms are used to complement prudential regulation (to increase its effectiveness)?I. The radical reform of over the counter (OTC) derivatives.II. The regulation of credit ratings and Credit Rating Agencies.III. The realignment of bankers’ incentives in the securitization process.IV. The review, amendment and modernization of existing laws and regulations. Question 9Answer a. I, II and III only. b. I, II and IV only. c. I, II, III and IV. d. II, III and IV only.

Q: 2a) Self-regulation, regulation by the government and regulation by a governmental agency are three…

A: Financial regulation is a kind of regulation or supervision that enforces particular rules, limits,…

Q: What is the primary function of the Securities and Exchange Commission (SEC) in the United States?…

A: The Securities and Exchange Commission (SEC) is a critical administrative body in the US monetary…

Q: Which is NOT a common characteristic of financial intermediaries? * A. None of the choices. B.…

A: Financial intermediaries give a center ground between two gatherings in any monetary exchange. A…

Q: Describe moral hazard and explain its reference to Central banks. a. How have moral hazards…

A: Moral hazard is a situation in which one party gets involved in a risky event knowing that it is…

Q: The term de-risking is best described as: a. Removing risk from the banking sector. b. The process…

A: The institution that accepts deposits from the general public and grants loans to businesses is…

Q: Explain the uses of financial instruments

A: Money has been used since ages. Many years ago there was barter system in which goods were exchanged…

Q: what is macroprudential regulation? how does it differ from microprudential regulation? outline the…

A: To prevent another global financial crisis like 2007-09, which exposed banks' and other large…

Q: How can the existence of asymmetric information providea rationale for government regulation of…

A: Asymmetric information is a situation the information possessed by the parties is not symmetric. In…

Q: Why did President Obama signed Dodd-Frank Wall Street Reform and Consumer Protection Act into law?

A: The Dodd Frank Wall Street Reform and Consumer Protection Act could be a law that regulates money…

Q: why banking one of the most heavily regulated industries in the U.S and world economies?

A: Regulated industry; A firm that is governed by government regulations: Workers in regulated areas,…

Q: Why is it a motion sickness even get a highly sensitive issue with respect to the implementation of…

A: In an economy, the anti-money laundering act refers to the government regulations in the financial…

Q: SECTION A: ANSWER ALL QUESTIONS 1. Financial intermediation is? A. Savers being matched with…

A: Since you have provided multiple questions, we will solve the first question for you. If you want…

Q: 1. What is the efficient market theory? 2. What is "Alpha"? 3. Describe the basics of "financial…

A: As you have asked multiple questions, only the first one will be answered. 1. The efficient market…

Q: True or False: When you finance the purchase of a vehicle, the bank that gives the loan puts a lien…

A: Loan refers to the amount taken from a financial institution against some security equal to the loan…

Q: Of the following, which can create an incentive for financial innovation? a. technological change…

A: Financial innovation and technological change can be aided by deregulation.   Deregulation is the…

Q: Explain the following statements: "(1) individual financial institutions will generally have…

A: Financial institutions are also known as banking institutions which provides intermediary services…

Q: The benefit of establishing a long-term relationship with your banker is to:   A. Reduce the…

A: A banker is a person that involves in receiving and depositing the customer’s money in the banks.

Q: Explain the problems of adverse selection and moral hazard caused by asymmetric information. How can…

A: Asymmetric information is a situation in which one party has more knowledge of information than the…

Q: What is financial repression and why does it exist?

A: Government economic policy refers to the methods used by a government to influence the economy. The…

Q: Like Insurance Regulatory Development Authority of India, briefly explain roles, responsibilities,…

A: The Financial Services Commission regulates and supervises the insurance industry in Mauritius,…

Q: Discuss the role of government in financial intermediation. Do you think government must be a player…

A: The primary goal of financial intermediation is to facilitate funding between savers and borrowers.…

Q: Explain the concept of regulatory capture in the banking industry. If banking supervision is…

A: Banking is one of the most extensively regulated and controlled sectors of the economy. Banks are…

Q: Match the situation with its corresponding risk category v The Federal Reserve increases capital…

A: 1. Market risk 2. Legal. Risk 3. Credit Risk 4. Settlement risk 5. Operational risk

Q: What are the seveb major types of financial institutions as of today?

A: Financial Institutions  Financial institution refers to the institutes which provide the services…

Q: Q1: Define and differentiate between: a) Organized exchanges and Over the counter markets b) Open…

A: Note:- Since we can only answer one question at a time, we'll answer the first one. Please repost…

Q: Advance reasons why commercial banks place emphasis on the management of risk.

A: Commercial banks accept deposits from the depositors and use these deposit to lend in the market.…

Q: lling MOST of the financial funds in USA. The following are true general statements about Financial…

A: Hey, Thank you for the question. According to our policy we can only answer the first question per…

Q: Please correct answer and step by step solution

A: Section B 2. Central Banks have a variety of instruments at their disposal to manage monetary…

Q: Because financial intermediaries operate on a big scale, this relates to minimizing the costs of…

A: A firm producing output can yield increasing, decreasing or constant returns to scale.

Q: In 2008 there was an increase in uncertainty about the quality of structured financial products that…

A: A mortgage or a group of mortgages serve as the collateral for a mortgage-backed security, or MBS.…

Q: When regulators engage in macroprudential regulation, they focus on O the safety and soundness of…

A: The objective of the question is to identify the main focus of regulators when they engage in…

Q: What is deregulation?  Who benefitted most from deregulation of the financial services industry?

A: The deregulation of the financial services industry, particularly prominent in the latter half of…

Q: 24. Financial institutions that cut back on their lending are engaged in A) liability management B)…

A: In an economy, lending refers to transferring excess funds of an individual or institutions to the…

Q: (b) Discuss the roles of financial intermediaries in solving adverse selection and moral hazard.…

A: Financial intermediaries are described as an institution that reacts as a middleman with regard to…

Q: The Securities and Exchange Commission (SEC) wants to review certain documents of Treasury Bonds,…

A: Just after 1929 Stock Market Collapse, the United States government established the Securities and…

Q: typing answer with explanation and conclusion Financial instruments with high information costs…

A: Financial instruments are assets that are tradable in nature or contracts that represent a financial…

Q: What are the legislation and regulatory changes thathave driven the changes in the services of the…

A: Maintaining financial sustainability and the security of customers are the core priorities of…

Q: Discuss Four (4) risks face by commercial bank with asymmetric information.

A: Asymmetric information refers to market situation when the trading parties has unequal information…