商业银行管理彼得S.罗斯英文原书第8版-英语试题库Chap002

15Chapter2TheImpactofGovernmentPolicyandRegulationontheFinancial-ServicesIndustryFillintheBlankQuestions1.The_____________________wascreatedaspartoftheGlassSteagallAct.Inthebeginningitinsureddepositsupto$2,500.Answer:FDIC2.The________________________isthelawthatstatesthatabankmustgetapprovedfromtheirregulatorybodyinordertocombinewithanotherbank.Answer:BankMergerAct3.OnetoolthattheFederalReserveusestocontrolthemoneysupplyis_________________.TheFederalReservewillbuyandsellT-billswhentheyareusingthistoolofmonetarypolicy.Answer:openmarketoperations4.The__________________________wascreatedin1913inresponsetoaseriesofeconomicdepressionsandfailures.Itsprincipalroleistoserveasthelenderoflastresortandtostabilizethefinancialmarkets.Answer:FederalReserve5.The__________________________preventedbanksfromcrossingstatelinesandmadenationalbankssubjecttothebranchinglawsoftheirstate.ThisactwaslaterrepealedbytheRiegleNealInterstateBankinglaw.Answer:McFadden-PepperAct6.BecausetheFDICleviesfixedinsurancepremiumsregardlessofrisk,thisleadstoaproblemcalledthe____________________amongbanks.Thefixedpremiumsencourageallbankstoacceptgreaterrisk.Answer:moralhazard7.In1980,__________________________waspassedandliftedgovernmentceilingsondepositinterestratesinfavoroffreemarketinterestrates.Answer:DIDMCATestBank,Chapter2168.OnetoolthattheFederalReserveusestocontrolthemoneysupplyis_________________.TheFederalReservewillchangetheinterestratetheychargeforshorttermloanswhentheyareusingthistoolofmonetarypolicy.Answer:changingthediscountrate9.ThefirstmajorfederalbankinglawintheU.S.wasthe__________________________.ThislawwaspassedduringtheCivilWarandsetupasystemforcharteringnationalbanksandcreatedtheOCC.Answer:NationalBankingAct10.The_________________________waspassedduringtheGreatDepression.ItseparatedinvestmentandcommercialbanksandcreatedtheFDIC.Answer:Glass-SteagallAct11.The__________________________broughtbankholdingcompaniesunderthejurisdictionoftheFederalReserve.Answer:BankHoldingCompanyAct12.The__________________________allowsbankholdingcompaniestoacquirebanksanywhereintheUnitedStates.However,noonebankcancontrolmorethan30percentofthedepositsinanyonestateormorethan10percentofthedepositsacrossthecountry.Answer:Riegle-NealInterstateBankingAct13.Theallowsbankstoaffiliatewithinsurancecompaniesandsecuritiesfirmseitherthroughaholdingcompanyorasasubsidiary.Answer:Gramm-Leach-BlileyAct(FinancialServicesModernizationAct)14.Customersoffinancial-servicecompaniesmay_____________________ofhavingtheirprivateinformationsharedwithathirdpartysuchasatelemarketer.However,inordertodothistheymusttellthefinancial-servicescompanyinwritingthattheydonotwanttheirpersonalinformationsharedwithoutsideparties.Answer:optout15.Thefederalbankregulatoryagencywhichexaminesthemostbanksisthe______________.Answer:FDIC16.The_________________requiresfinancialservicecompaniestoreportsuspiciousactivityincustomeraccountstotheTreasuryDepartment.Answer:U.S.PatriotAct1717.ThecentralbankofthenewEuropeanUnionisknownasthe_______________________.Answer:EuropeanCentralBankorECB18.The_____________________Actprohibitsbanksandotherpubliclyownedfirmsfrompublishingfalseormisleadingfinancialperformanceinformation.Answer:Sarbanes-Oxley19.OneofthemainrolesoftheFederalReservetodayis.Theyhavethreetoolsthattheyusetodaytocarryoutthisrole;openmarketoperations,thediscountrateandlegalreserverequirements.Answer:monetarypolicy20.TheisthecenterofauthorityanddecisionmakingwithintheFederalReserve.Itconsistsofsevenmembersappointedbythepresidentfortermsnotexceeding14years.Answer:BoardofGovernors21.Themainregulatorsofinsurancecompaniesare.Answer:stateinsurancecommissions22.FederalCreditUnionsareregulatedandexaminedby.Answer:theNationalCreditUnionAdministration.23.Themakesiteasierforvictimsofidentitythefttofilefraudalertsandallowsthepublictoapplyforafreecreditreportonceayear.Answer:FairandAccurateCreditTransactionsAct(FACTAct)24.Themakesitfasterandlesscostlyforbankstoclearchecks.Itallowsforbankstoelectronicallysendcheckimagesinsteadofshippingpaperchecksacrossthecountry.Answer:Check21Act25.ThewascreatedbytheNationalBankingActandispartoftheTreasuryDepartment.ItistheprimaryregulatorofNationalBanks.Answer:OfficeoftheComptrolleroftheCurrency(OCC)26.The_________________________proposesvariousregulationsapplyingtothefinancialmarketstocombattherecentcreditcrisis.This“bail-out”billgrantedtheUSTreasurythemeanstopurchasetroubledloans,allowedtheFDICtotemporarilyincreasedepositinsurance,andpermittedthegovernmenttoinjectadditionalcapitalintothebankingsystem.Answer:TheEmergencyEconomicStabilizationActof2008True/FalseQuestionsTestBank,Chapter218TF27.FederalReserveActauthorizedthecreationoftheFederalDepositInsuranceCorporation.Answer:FalseTF28.IntheUnitedStates,fixedfeeschargedfordepositinsurance,regardlessofhowriskyabankis,ledtoaproblemknownasmoralhazard.Answer:TrueTF28.Government-sponsoreddepositinsurancetypicallyencouragesindividualdepositorstomonitortheirbanks'behaviorinacceptingrisk.Answer:FalseTF29.TheFederalReservechangesres