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Question
All of the following were the objectives of the Glass-Steagall Act excepta. discouraging speculation in financial markets.
b. limiting bank mergers when the merger might adversely affect competition.
c. preventing conflict of interest and self-dealing.
d. restoring confidence in the commercial banking system.
e. All of the above were the objectives of the Glass-Steagall Act.
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
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a. FDIC
b. Office of Comptroller of Currency
c. Office of Thrift Supervision
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a. the banks will be upset with FDIC.
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c. the moral hazard associated with deposit insurance is still present.
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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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The presence of moral hazard incentives
a. reduces the need for close regulatory supervision.
b. increases the need for more regulations, examinations, and regulators.
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a. To promote safety and soundness.
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c. regulatory accounting practices, which inflated capital ratios.
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Financial institutions are regulated for the following reason(s):
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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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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.
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The Office of the Comptroller of the Currency (OCC) is the oldest bank regulatory agency.
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A foreign branch office of a U.S. bank is regulated by
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b. the host country bank regulation.
c. the FDIC.
d. the SEC.
e. both a and b
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b. pooling risk through syndication with other banks.
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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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d. are priced relative to the LIBOR.
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a. Edge Act banks
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c. international banking facility
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a. allow international banks to branch throughout every country involved.
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If a hedge fund manager focused on short-selling of stocks, he/she would
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c. borrow money to invest in stocks.
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c. balanced funds
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a. maintaining lines of credit at commercial banks
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c. working to maintain low NAV
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