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Question
Moral hazard incentives for undesirable manager behavior may have been created bya. a "too big to fail" policy.
b. a flat proportional premium charge to banks and thrifts for deposit insurance.
c. regulatory accounting practices, which inflated capital ratios.
d. all of the above
Answer
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Related questions
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a. The USA Patriot Act
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c. The 9/11 Act
d. The U.S. Treasury Department Act
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A state-chartered bank which is not a member of the Federal Reserve System will
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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,
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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.
b. increases the need for more regulations, examinations, and regulators.
c. reduces the church attendance rate of bank managers.
d. increases the role of markets in disciplining excessive risk-taking.
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All of the following are reasons to regulate depository institutions except:
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The maximum amount of FDIC deposit insurance per eligible retirement account is
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Regulations provide financial institutions certain benefits such as
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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.
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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.
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d. diversification.
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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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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
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Most large international loans are funded in the Eurocurrency market.
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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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Which of the following is not the difference between hedge funds and mutual funds?
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c. Unlike mutual funds, hedge funds concentrate their investment in very few areas.
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c. working to maintain low NAV
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b. Provide excellent liquidity for investors
c. High quality and relatively high yield when the yield curve is inverse
d. all of the above