Reference no: EM13742339
Question 1: The holding-company device to control two or more commercial banks:
- Has diminished in importance in recent years
- Has increased in importance in recent years
- Is limited to state chartered banks
- Is sometimes described as chain banking
Question 2: The Federal Deposit Insurance Corporation Improvement Act of 1991:
- Transferred the reserves and functions of the Federal Savings and Loan Insurance Corporation to the FDIC
- Required that failed banks be handled in such a way as to provide the lowest cost to the FDIC
- Increased federal deposit insurance from $40,000 to $100,000 for each account
- Extended federal deposit insurance to S&L depositors
Question 3: The Monetary Control Act:
- Extended the Fed's control to thrift institutions and non-member commercial banks
- Has resulted in more competition among depository institutions
- Increased federal deposit insurance from $40,000 to $80,000 for each account
- Established minimum capital requirements for banks with federal charters
Question 4: The item on the assets side of a bank's balance sheet that represents the largest proportion of bank assets is:
- Deposits
- Owner's capital
- Securities
- Loans
Question 5: The item on the liabilities and equity section of a bank's balance sheet that represents the largest proportion of a typical bank's assets is:
- Deposits
- Owner's capital
- Securities
- Federal funds
Question 6: The item on the liabilities and equity section of a bank's balance sheet that represents the smallest proportion of bank's assets is:
- Deposits
- Owner's capital
- Securities
- Federal funds
Question 7: An organization that sells or markets new securities issued by businesses to individuals and institutional investors is called a (n)
- Mutual fund
- Investment bank
- Insurance company
- Brokerage firm
Question 8: The primary purpose of this Act was to aid the savings and loan industry
- Garn-St. Germain Depository Institutions Act
- Glass-Steagall Act
- Hunt Commission legislation
- Depository Institutions Deregulation and Monetary Control Act
Question 9: An organization that sells shares in their firms to individuals and others and invests the proceeds in corporate and government securities is called a (n)
- Investment company
- Investment bank
- Insurance company
- Brokerage firm
Question 10: An organization that received contributions from employees and/or their employers and invests the proceeds on behalf of the employees for use during their retirement years is called a (n)
- Mutual fund
- Savings bank
- Pension fund
- Retirement fund
Question 11: The __________________, passed in 1968, requires the clear explanation of consumer credit costs and garnishment procedures (taking wages or property by legal means) and prohibits overly high-priced credit transactions.
- Consumer credit expansion act
- Credit growth act
- Consumer credit protection act
- Consumer safety act
Question 12: The Board of Governors:
- Is elected by the member banks
- Is appointed by the senate
- Has seven members appointed for 14-year terms
- Has seven members appointed for a term of 12 years
Question 13: The banking system of the United States is a ___________ reserve system because banks are required by the Fed to hold reserves equal to a specified percentage of their deposits.
- Required
- Fractional
- Proportional
- Multiplicative
Question 14: The dynamic actions of the Federal Reserve System:
- Contribute to the smooth everyday functioning of the economy
- Are designed to meet the credit needs of individuals and institutions
- Support depositories and other institutions
- Stimulate or repress the level of prices or economic activity
Question 15: The Federal Reserve Banks are owned by:
- Commercial banks
- The u.s. treasury
- National member banks of the federal reserve system
- Member banks of the federal reserve system
Question 16: The Board of Governors publishes ________________, which carries articles of current interest and offers a convenient source of the statistics compiled by the Fed.
- The Federal Reserve Magazine
- The Federal Reserve Bulletin
- The Federal Reserve Journal
- The Federal Reserve News
Question 17: The Fed shares its depository examining functions with:
- The Federal Savings and Loan Insurance Corporation
- The FDIC, Comptroller of the Currency, And State Agencies
- Only the Comptroller of the Currency
- National Credit Union Administration and the FDIC
Question 18: ____________________________ requires disclosure of the finance charge and the annual percentage rate of credit along with certain other costs and terms to permit consumers to compare the prices of credit from differing sources.
- Truth in Lending Act
- Equal Credit Opportunity Act
- Federal Trade Commission Improvement Act
- Fair Credit Billing Act
Question 19: The percentage of deposits that must be held as reserves is called
- The bank reserve percentage
- The required reserve ratio
- The excess reserve ratio
- The fractional reserve percentage
Question 20: The purpose of Regulation Z is to:
- Make consumers aware of the costs of alternative forms of credit
- Prohibit garnishment
- Encourage depository institutions to help meet the credit needs of their communities for housing and other purposes
- Regulate the overseas activities of member banks of the federal reserve system