商业银行管理彼得S罗斯英文原书第8版英语试题库Chap002.docx
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商业银行管理彼得S罗斯英文原书第8版英语试题库Chap002
Chapter2
TheImpactofGovernmentPolicyandRegulationontheFinancial-ServicesIndustry
FillintheBlankQuestions
1.The_____________________wascreatedaspartoftheGlassSteagallAct.Inthebeginningitinsureddepositsupto$2,500.
Answer:
FDIC
2.The________________________isthelawthatstatesthatabankmustgetapprovedfromtheirregulatorybodyinordertocombinewithanotherbank.
Answer:
BankMergerAct
3.OnetoolthattheFederalReserveusestocontrolthemoneysupplyis_________________.TheFederalReservewillbuyandsellT-billswhentheyareusingthistoolofmonetarypolicy.
Answer:
openmarketoperations
4.The__________________________wascreatedin1913inresponsetoaseriesofeconomicdepressionsandfailures.Itsprincipalroleistoserveasthelenderoflastresortandtostabilizethefinancialmarkets.
Answer:
FederalReserve
5.The__________________________preventedbanksfromcrossingstatelinesandmadenationalbankssubjecttothebranchinglawsoftheirstate.ThisactwaslaterrepealedbytheRiegleNealInterstateBankinglaw.
Answer:
McFadden-PepperAct
6.BecausetheFDICleviesfixedinsurancepremiumsregardlessofrisk,thisleadstoaproblemcalledthe____________________amongbanks.Thefixedpremiumsencourageallbankstoacceptgreaterrisk.
Answer:
moralhazard
7.In1980,__________________________waspassedandliftedgovernmentceilingsondepositinterestratesinfavoroffreemarketinterestrates.
Answer:
DIDMCA
8.OnetoolthattheFederalReserveusestocontrolthemoneysupplyis_________________.TheFederalReservewillchangetheinterestratetheychargeforshorttermloanswhentheyareusingthistoolofmonetarypolicy.
Answer:
changingthediscountrate
9.ThefirstmajorfederalbankinglawintheU.S.wasthe__________________________.ThislawwaspassedduringtheCivilWarandsetupasystemforcharteringnationalbanksandcreatedtheOCC.
Answer:
NationalBankingAct
10.The_________________________waspassedduringtheGreatDepression.ItseparatedinvestmentandcommercialbanksandcreatedtheFDIC.
Answer:
Glass-SteagallAct
11.The__________________________broughtbankholdingcompaniesunderthejurisdictionoftheFederalReserve.
Answer:
BankHoldingCompanyAct
12.The__________________________allowsbankholdingcompaniestoacquirebanksanywhereintheUnitedStates.However,noonebankcancontrolmorethan30percentofthedepositsinanyonestateormorethan10percentofthedepositsacrossthecountry.
Answer:
Riegle-NealInterstateBankingAct
13.Theallowsbankstoaffiliatewithinsurancecompaniesandsecuritiesfirmseitherthroughaholdingcompanyorasasubsidiary.
Answer:
Gramm-Leach-BlileyAct(FinancialServicesModernizationAct)
14.Customersoffinancial-servicecompaniesmay_____________________ofhavingtheirprivateinformationsharedwithathirdpartysuchasatelemarketer.However,inordertodothistheymusttellthefinancial-servicescompanyinwritingthattheydonotwanttheirpersonalinformationsharedwithoutsideparties.
Answer:
optout
15.Thefederalbankregulatoryagencywhichexaminesthemostbanksisthe______________.
Answer:
FDIC
16.The_________________requiresfinancialservicecompaniestoreportsuspiciousactivityincustomeraccountstotheTreasuryDepartment.
Answer:
U.S.PatriotAct
17.ThecentralbankofthenewEuropeanUnionisknownasthe_______________________.
Answer:
EuropeanCentralBankorECB
18.The_____________________Actprohibitsbanksandotherpubliclyownedfirmsfrompublishingfalseormisleadingfinancialperformanceinformation.
Answer:
Sarbanes-Oxley
19.OneofthemainrolesoftheFederalReservetodayis.Theyhavethreetoolsthattheyusetodaytocarryoutthisrole;openmarketoperations,thediscountrateandlegalreserverequirements.
Answer:
monetarypolicy
20.TheisthecenterofauthorityanddecisionmakingwithintheFederalReserve.Itconsistsofsevenmembersappointedbythepresidentfortermsnotexceeding14years.
Answer:
BoardofGovernors
21.Themainregulatorsofinsurancecompaniesare.
Answer:
stateinsurancecommissions
22.FederalCreditUnionsareregulatedandexaminedby.
Answer:
theNationalCreditUnionAdministration.
23.Themakesiteasierforvictimsofidentitythefttoalertsandallowsthepublictoapplyforafreecreditreportonceayear.
Answer:
FairandAccurateCreditTransactionsAct(FACTAct)
24.Themakesitfasterandlesscostlyforbankstoclearchecks.Itallowsforbankstoelectronicallysendcheckimagesinsteadofshippingpaperchecksacrossthecountry.
Answer:
Check21Act
25.ThewascreatedbytheNationalBankingActandispartoftheTreasuryDepartment.ItistheprimaryregulatorofNationalBanks.
Answer:
OfficeoftheComptrolleroftheCurrency(OCC)
26.The_________________________proposesvariousregulationsapplyingtothefinancialmarketstocombattherecentcreditcrisis.This“bail-out”billgrantedtheUSTreasurythemeanstopurchasetroubledloans,allowedtheFDICtotemporarilyincreasedepositinsurance,andpermittedthegovernmenttoinjectadditionalcapitalintothebankingsystem.
Answer:
TheEmergencyEconomicStabilizationActof2008
True/FalseQuestions
TF27.FederalReserveActauthorizedthecreationoftheFederalDepositInsuranceCorporation.
Answer:
False
TF28.IntheUnitedStates,fixedfeeschargedfordepositinsurance,regardlessofhowriskyabankis,ledtoaproblemknownasmoralhazard.
Answer:
True
TF28.Government-sponsoreddepositinsurancetypicallyencouragesindividualdepositorstomonitortheirbanks'behaviorinacceptingrisk.
Answer:
False
TF29.TheFederalReservechangesreserverequirementsfrequentlybecausetheaffectofthesechangesissosmall.
Answer:
False
TF30.TheBankMergerActanditsamendmentsrequiresthatBankHoldingCompaniesbeunderthejurisdictionoftheFederalReserve.
Answer:
False
TF31.NationalbankscannotmergewithoutthepriorapprovaloftheComptrolleroftheCurrency.
Answer:
True
TF32.TheTruthinLending(orConsumerCreditProtection)ActwaspassedbytheU.S.Congresstooutlawdiscriminationinprovidingbankservicestothepublic.
Answer:
False
TF33.Thefederallawthatstatesindividualsandfamiliescannotbedeniedaloanmerelybecauseoftheirage,sex,race,nationaloriginorreligiousaffiliationisknownastheCompetitiveEqualityinBankingAct.
Answer:
False
TF34.Underthetermsofthe1994Riegle-NealInterstateBankinglawbankholdingcompaniescanacquireabankanywhereinsidetheUnitedStates,subjecttoFederalReserveBoardapproval.
Answer:
True
TF35.The1994federalinterstatebankingbilldoesnotlimitthepercentageofstatewideornationwidedepositsthataninterstatebankingfirmisallowedtocontrol.
Answer:
False
TF36.Theterm"regulatorydialectic"referstothedualsystemofbankingregulationintheUnitedStatesandselectedothercountrieswhereboththefederalorcentralgovernmentandlocalgovernmentsregulatebanks.
Answer:
False
TF37.Themoralhazardproblemofbanksiscausedbythefixedinsurancepremiumspaidbybanksandcausesbankstoacceptgreaterrisk.
Answer:
True
TF38.WhentheFederalReservebuysT-billsthroughitsopenmarketoperations,itcausesthegrowthofbankdepositsandloanstodecrease.
Answer:
False
TF39.WhentheFederalReserveincreasesthediscountrateitgenerallycausesotherinterestratestodecrease.
Answer:
False
TF40.TheNationalBankAct(1863)createdtheFederalReservewhichactsasthelenderoflastresort.
Answer:
False
TF41.FIRREA(1989)allowedbankholdingcompaniestoacquirenonblankdepositoryinstitutionsand,ifdesired,convertthemintobranchoffices.
Answer:
True
TF42.TheSarbanes-OxleyActallowsbanks,insurancecompanies,andsecuritiesfirmstoformFinancialHoldingCompanies(FHCs).
Answer:
False
TF43.TheGramm-Leach-BlileyActof1999essentiallyrepealstheGlass-SteagallActpassedinthe1930s.
Answer:
True
TF44.Passedin1977,theEqualCreditOpportunityActprohibitsbanksfromdiscriminatingagainstcustomersmerelyonthebasisoftheneighborhoodinwhichtheylive.
Answer:
False
TF45.ThetoolusedbytheFederalReserveSystemtoinfluencetheeconomyandbehaviorofbanksisknownasmoralhazard.
Answer:
False
TF46.Oneoftheprincipalreasonsforgovernmentregulationoffinancialfirmsistoprotectthesafetyandsoundnessofthefinancialsystem.
Answer:
True
MultipleChoiceQuestions
47.Banksareregulatedforwhichofthereasonslistedbelow?
A)Banksareleadingrepositoriesofthepublic'ssavings.
B)Bankshavethepowertocreatemoney.
C)Banksprovidebusinessesandindividualswithloansthatsupportconsumptionandinvestmentspending.
D)Banksassistgovernmentsinconductingeconomicpolicy,collectingtaxesanddispensinggovernmentpayments.
E)Alloftheabove.
Answer:
E
48.Aninstitutionalarrangementinwhichfederalandstateauthoritiesbothhavesignificantbankregulatorypowersisreferredtoas:
A)BalanceofPower
B)Federalism
C)DualBankingSystem
D)CooperativeRegulation
E)CoordinatedControl
Answer:
C
49.Thelawthatsetupthefederalbankingsystemandprovidedforthecharteringofnationalbanks
wasthe:
A)NationalBankAct
B)McFadden-Pep