25. The _____________________________________ was created by the National Bank Act and is part of the Treasury Department. It is the primary regulator of national banks. ________________________________________ 26. The _________________________ proposes various regulations applying to the financial markets to combat the recent credit crisis. This "bail-out" bill granted the US Treasury the means to purchase troubled loans, allowed the FDIC to temporarily increase deposit insurance, and permitted the government to inject additional capital into the banking system. ________________________________________ True / False Questions 27. Federal Reserve Act authorized the creation of the Federal Deposit Insurance Corporation. True False 28. In the United States, fixed fees charged for deposit insurance, regardless of how risky a bank is, led to a problem known as moral hazard. True False 29. Government-sponsored deposit insurance typically encourages individual depositors to monitor banks' behavior in accepting risk. True False 30. The Federal Reserve changes reserve requirements frequently because the effect of these changes is small. True False 31. The Bank Merger Act and its amendments require that Bank Holding Companies be under the jurisdiction of the Federal Reserve. True False 32. National cannot merge without the prior approval of the Comptroller of the Currency. True False
25. The _____________________________________ was created by the National Bank Act and is part of the Treasury Department. It is the primary regulator of national banks. ________________________________________ 26. The _________________________ proposes various regulations applying to the financial markets to combat the recent credit crisis. This "bail-out" bill granted the US Treasury the means to purchase troubled loans, allowed the FDIC to temporarily increase deposit insurance, and permitted the government to inject additional capital into the banking system. ________________________________________ True / False Questions 27. Federal Reserve Act authorized the creation of the Federal Deposit Insurance Corporation. True False 28. In the United States, fixed fees charged for deposit insurance, regardless of how risky a bank is, led to a problem known as moral hazard. True False 29. Government-sponsored deposit insurance typically encourages individual depositors to monitor banks' behavior in accepting risk. True False 30. The Federal Reserve changes reserve requirements frequently because the effect of these changes is small. True False 31. The Bank Merger Act and its amendments require that Bank Holding Companies be under the jurisdiction of the Federal Reserve. True False 32. National cannot merge without the prior approval of the Comptroller of the Currency. True False
Test-Bank-for-Bank-Management-and-Financial-Services-9th-Edition-by-Rose.docx