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Question
A repurchase agreement calls fora. a firm to sell securities with the agreement to buy them back later at a higher price.
b. a firm to buy securities with the agreement to sell them back later at a higher price.
c. a firm to sell securities with the agreement to buy them back later at a lower price.
d. a firm to buy securities with the agreement to sell them back later at a lower price.
Answer
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Related questions
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In recent years, know-your-clients (KYC) is required by international financial regulators. In the U.S., what is the act that requires financial institutions to share information about customer identities with appropriate government agencies?
a. The USA Patriot Act
b. The Sarbanes-Oxley Act
c. The 9/11 Act
d. The U.S. Treasury Department Act
e. The Gramm-Leach-Bliley Act
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A state-chartered bank which is not a member of the Federal Reserve System will
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b. FDIC
c. OCC
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a. FDIC
b. Office of Comptroller of Currency
c. Office of Thrift Supervision
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If FDIC tends to charge depository institutions less than the full cost of deposit insurance in its risk-based deposit premium system,
a. the banks will be upset with FDIC.
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c. the moral hazard associated with deposit insurance is still present.
d. the regulator will not have to worry about banks taking excessive risk.
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If bank managers lobby to maintain America's traditional "dual banking" structure, they:
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b. want to maintain the right to make loans and take deposits.
c. want the right to fight competition.
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Q:
The presence of moral hazard incentives
a. reduces the need for close regulatory supervision.
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c. reduces the church attendance rate of bank managers.
d. increases the role of markets in disciplining excessive risk-taking.
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a. To promote safety and soundness.
b. To affect the structure of banking.
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Moral hazard incentives for undesirable manager behavior may have been created by
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Financial institutions are regulated for the following reason(s):
a. they provide essential financial services to consumers and businesses.
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In a purchase and assumption of a failed bank, an assuming bank may be required to invest funds for all but one of the following reasons:
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b. acquire the deposit liabilities
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Q:
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Bank capital is the most reliable cushion that prevents a decline in asset values from threatening the integrity of bank deposits.
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Bailout of large banks by federal regulators is an example of market discipline.
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Banks are regulated in part to protect the nation's money supply, much of which is a liability of the banking industry.
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A "too big to fail" policy encourages small banks to take higher risks.
Q:
The Office of the Comptroller of the Currency (OCC) is the oldest bank regulatory agency.
Q:
A foreign branch office of a U.S. bank is regulated by
a. U.S. bank regulations
b. the host country bank regulation.
c. the FDIC.
d. the SEC.
e. both a and b
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Which of the following is associated with the currency risk of international lending by a U.S. bank?
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b. have floating rates.
c. are made for relatively small amounts.
d. are priced relative to the LIBOR.
Q:
Which of the following forms of international banking organization was intended to bring offshore, shell banking back to the U. S.?
a. Edge Act banks
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c. international banking facility
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Q:
While country central banks have pursued their own country interests, recently under the framework of the Bank for International Settlements, central banks from leading economies have agreed to
a. allow international banks to branch throughout every country involved.
b. stabilize interest rates.
c. establish minimum capital ratios for international banks.
d. maintain fixed exchange rates.
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Most large international loans are funded in the Eurocurrency market.
Q:
If a hedge fund manager focused on short-selling of stocks, he/she would
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b. invest in companies with high future growth prospects.
c. borrow money to invest in stocks.
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Q:
Which of the following is not the difference between hedge funds and mutual funds?
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Which of the following mutual fund types is likely to have the highest risk exposure?
a. growth and income funds
b. aggressive growth funds
c. balanced funds
d. income-equity funds
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Mutual fund managers can keep their cash balances low by all but one of the following:
a. maintaining lines of credit at commercial banks
b. increasing redemption fees
c. working to maintain low NAV
d. redeeming shares with stock