1. What contributed to banks being allowed (in 1980) to pay interest on checking accounts, and pay more than 5% on savings accounts?

the SALT Treaty

the elimination of the Gold Standard

the explosion of interstate banking

inflation

2. The primary reason for the reduction in the number of banks since the mid 1980s is

the revocation of state charters.

mergers and bank consolidation.

bank failures.

restrictions on interstate branching.

3. If you have a charter issued by the OCC, you must have ___________ in your name.

N.A.

national

bank

National or N.A.

4. Who would be supportive of the idea that Congress decides what is/is not a bank?

The credit union industry in general.

The banking industry in general.

The OCC.

Large banks.

All of these except the OCC and large banks.

State regulatory bodies.

5. US Treasury securities are attractive assets for banks because they

offer liquidity.

have a short term to maturity.

are issued by the US government.

offer a high rate of return.

5. The trend of shrinking interest rate spreads have led banks to turn to fee-based services to generate revenue.

True

False

6. Regulators can force a bank to cut its dividend if it feels the bank is in a deficit capital position.

True

False