1. The principal reason for bank regulation is :

Select one:

a.Control of the money supply

b.Protection of the public's savings

c.Preventing banks from realizing monopoly powers

d.Providing support for government activities

e.Maintaining confidence in the banking system

2. Banks are regulated because:

Select one:

a.Banks provide businesses and individuals with loans that support consumption and investment spending.

b.Banks are leading repositories of the public's savings.

c.Banks have the power to create money.

d.Banks assist governments in conducting economic policy, collecting taxes and dispensing government payments.

e.All of the above.

3.

Delegated monitoring role of bank is:

Select one:

a.The efficiency contribution of banking

b.The view that depositors hire banks to analyze the financial condition of prospective borrowers and continually evaluate the condition of outstanding loans.

c.Market imperfection theory

d.The concept of financial intermediation

e.The liquidity function in banking

4. The convergence in banking refers to:

a.Firms reducing their product lines

b.Technological innovation in banking

c.Financial service firms expanding into other product lines

d.Globalization in banking

e.Bank merger activity