1) The current supervisory practice toward risk management

A) focuses on the quality of a bank"s balance sheet.

B) determines whether capital requirements have been met.

C) evaluates the soundness of a bank"s risk-management process.

D) focuses on eliminating all risk.

2) Regulations designed to provide information to the marketplace so that investors can make informed decisions are called

A) disclosure requirements.

B) efficient market requirements.

C) asset restrictions.

D) capital requirements.

3) With ________, firms value assets on their balance sheet at what they would sell for in the market.

A) mark-to-market accounting

B) book-value accounting

C) historical-cost accounting

D) off-balance sheet accounting

4) During times of financial crisis, mark-to-market accounting

A) requires that a financial firms" assets be marked down in value which can worsen the lending crisis.

B) leads to an increase in the financial firms" balance sheets since they can now get assets at bargain prices.

C) leads to an increase in financial firms" lending.

D) results in financial firms" assets increasing in value.