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1

In the United States the _____ insures the pension benefits of about 40 million U.S. workers who belong to defined-benefit pension programs.
A)FDIC
B)SAIF
C)PBGC
D)NCUSIF
E)none of the above
2

A national bank is declared insolvent and closed in the United States by the:
A)Federal Deposit Insurance Corporation
B)Comptroller of the Currency
C)Federal Reserve System
D)Securities and Exchange Commission
E)none of the above
3

Tier Two capital for a bank, under the terms of the Basle Agreement includes all of the following items except one. What item is not included in Tier Two capital?
A)subordinated capital notes over 5 years to maturity
B)retained earnings
C)limited-life preferred stock
D)loan-loss reserves
E)all of the above are part of the Tier Two capital
4

The federal law that prohibited savings and loans from buying junk bonds and required savings and loans to focus the majority of their lending on the housing industry was the:
A)Community Reinvestment Act
B)Depository Institutions Deregulation Act
C)Glass-Steagall Act
D)Financial Institutions Reform, Recovery, and Enforcement Act
E)none of the above
5

Which of the following is a self-regulatory institution?
A)National Association of Securities Dealers (NASD)
B)New York Stock Exchange
C)Chicago Board Options Exchange
D)all the above
E)none of the above
6

According to a recent study of the banking industry, regulatory costs:
A)amounted to 12-13% of all banks' non-interest costs
B)are more pronounced for consumer disclosure laws
C)are subject to economies of scale in the larger banks
D)all of the above
E)none of the above
7

The first banking organization in the U.S. granted the power to underwrite corporate stock issues in the period after passage of the Glass-Steagall Act was:
A)Chemical Bank
B)Bankers Trust Company
C)Bank of America
D)J. P. Morgan
E)none of the above
8

Tier One capital for a bank as defined under the terms of the Basle Agreement includes all of the following items except one. What item is not included in Tier One capital?
A)common stock
B)perpetual preferred stock
C)retained earnings
D)loan-loss reserves
E)all of the above are part of the Tier One capital
9

Under what law is investment fraud and the intentional deception of investors outlawed in the United States?
A)Federal Reserve Act
B)Income Security Act
C)Deceptive Practices Act
D)Investment Advisors Act
E)none of the above
10

Which of the following laws required that a bank or a thrift be closed if its ratio of tangible equity capital to total assets fell below two percent for more than 90 days?
A)Federal Deposit Insurance Corporation (FDIC)
B)Riegle-Neal Interstate Banking and Branching Efficiency Act
C)Federal Deposit Insurance Corporation Improvement Act (FDICIA)
D)Financial Institutions Reform, Recovery, and Enforcement Act
E)Garn-St Germain Depository Institutions Act
11

The primary federal regulator of money market mutual funds in the United States is the:
A)Federal Reserve Board
B)Office of Thrift Supervision
C)Investment Company Institute
D)Securities and Exchange Commission
E)none of the above
12

A single banking organization operating in the United States can acquire no more than _____ percent of nationwide deposits. Which number below correctly fills in the blank in the preceding sentence?
A)10
B)20
C)25
D)30
E)none of the above
13

All bank holding company activities in the United States are regulated and examined by the:
A)Federal Reserve System
B)Comptroller of the Currency
C)Federal Deposit Insurance Corporation
D)Securities and Exchange Commission
E)none of the above
14

The _____ permitted bank holding companies to acquire savings and loan associations and savings banks within each state and across state lines.
A)Financial Institutions Reform, Recovery, and Enforcement Act of 1989
B)Riegle-Neal Interstate Banking Act
C)Gramm-Leach-Bliley Act
D)Glass-Steagall Act
E)Depository Institutions Deregulation and Monetary Control Act
15

Under what rule or regulation can a financial institution or other security-issuing firm in the United States file a statement of intention to sell new securities up to two years before those securities are actually brought to market?
A)Rule 12
B)SFAS 85
C)Rule 415
D)SFAS 110
E)none of the above
16

Insider trading activities are investigated in the United States predominantly by the:
A)Department of Justice
B)Federal Trade Commission
C)Federal Reserve Board
D)Financial Accounting Standards Board
E)none of the above
17

According to the _____ the U.S. Congress stipulated that no bank holding company could acquire more than 5 percent of the voting stock of banks located outside its home state without express permission from the state entered.
A)Glass-Steagall Act
B)Bank Merger Act
C)Douglas Amendment
D)Depository Institutions Deregulation and Monetary Control Act
E)Riegle-Neal Interstate Banking Act
18

The policy of allowing an insolvent or deeply troubled financial institution to continue to operate rather then being closed down by regulators is called:
A)Laissez faire
B)Delayed Corrective Action
C)Regulatory Forbearance
D)Qualified Thrift Lending (QTL)
E)none of the above
19

A savings and loan association holding a minimum of 65 percent of its total assets in mortgage-related investments or other qualified assets is known as a:
A)QTL
B)OTS
C)SAIF
D)DIDC
E)none of the above
20

According to the ______ nonbank businesses acquired by bank holding companies must be "closely related to banking."
A)National Bank Act
B)Bank Holding Company Act of 1956
C)1970 Amendments to the Bank Holding Company Act
D)Glass-Steagall Act
E)Riegle-Neal Interstate Banking Act





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