When financial system regulators ways limit systematic risks

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Reference no: EM13936194

For each of the following you only need to provide a one or two-word response (choose one of the underlined phrases for each statement).

a) When comparing Germany and the US, external financing is obtained through bank loans more or less in the US than in Germany?

b) When banks in general find themselves short of bank capital we typically see banks begin to increase or decrease their overall amount of lending?

c) Because saving accounts are less liquid than checking deposits, saving accounts are paid more or less interest?

d) Lower bank capital increases the likelihood of bankruptcy, but lower bank capital increases or decreases the return on equity for a given return on assets?

e) When you deposit $100 of currency into a checking account at CityBank, the bank's capital automatically, does or does not change?

f) When financial system regulators seek ways to limit systematic risk in the financial system, this is an example of microprudential or macroprudential regulation?

g) Requiring loan applicants to agree to restrictions or penalties if they violate the terms of their loan is primarily to reduce the problem of adverse selection or moral hazard?

h) When we talk about a bank needing to focus on liquidity management, we mean that the bank needs to change its excess or required reserves level?

i) Reducing the need for depositors to monitor banks is or is not an asymmetric problem created by the government's safety net?

j) Indirect finance is more or less important as a source of funds than direct finance in the U.S.?

Reference no: EM13936194

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