1. Which of the agencies below have a direct role in regulating US banks? (Select all that apply; three of the answers below are correct.)

Reference: Chapters 11, 13

Group of answer choices

Federal Reserve (FRB)

Securities & Echange Commission (SEC)

Office of the Comptroller of the Currency (OCC)

National Association of Insurance Commissioners (NAIC)

Nobody; banks are not regulated

Federal Deposit Insurance Corporation (FDIC)

2.

Some of the regulatory requirements imposed on U.S. commercial banks include: (Select all that apply; four of the answers below are correct)

Reference: Chapters 13

Group of answer choices

monitoring & surveillance (including regular inspections by regulators)

100% reserve requirement on "demand deposits" such as checking accounts (to insure that funds are available to repay depositors at all times)

consumer protection regulations (which prevent abusive and/or discriminatory practices)

limits on profitability (ie, banks are not allowed to earn a Return on Equity greater than 10% in the US)

capital adequacy regulations (which require banks to hold a minimum level of capital relative to their risk assets based on measures such as "Tier I Capital")

limits on loan concentration (which prevent banks from making loans of more than 15% of their equity capital to a single borrower)