1. The ______________________ regulations are the commercial bank regulations designed to encourage banks to lend to socially important sectors such as housing and farming.

A. consumer protection B. credit allocation C. investor protection D. safety and soundness E. monetary policy

2. A bank charter would have greater value if:

I. There were more activities in which the bank could engage II. Capital adequacy requirements increased by 20% III. Reserve requirements increased by 20% IV. There were additional restrictions on new bank charters

A. I only B. I and II only C. III and IV only D. I and IV only E. II and III only