2. Bank operation regulation Regulation of Deposit Insurance True or False: Prior to 1991, all U.S. banks paid the same rate on FDIC insurance, causing banks to engage in riskier behaviors, which is an example of the moral hazard problem. True False Regulation of Deposits Which of the following allowed banks to begin offering accounts to customers who had no maturity or interest rate celling, and allowed the banks opportunities to acquire falling institutions across geographic boundaries? The Sarbanes-Oxley (SOX) Act The Community Reinvestment Act (CRA) The Garn-St. Germain Act The Riegle-Neal Interstate Banking and Branching Efficiency Act Regulation of Bank Loans Which of the following are regulated to incentivize banks to issue loans to qualified low-income borrowers? Check all that apply. Foreign loans Loans to a single borrower Highly leveraged transactions Loans to members within their community Regulation of Investment Securities Which of the following requires that banks use not only credit ratings assigned by credit rating agencies but also other methods to assess the risk of Regulation of Investment Securities Which of the following requires that banks use not only credit ratings assigned by credit rating agencies but also other methods to assess the risk of debt securities, including their own assessment of risk? The Depository Institutions Deregulation and Monetary Control Act (DIDMCA) The Financial Reform Act of 2010 Gramm-Leach-Bliley Act O The Glass-Steagall Act Regulation of Securities Services Which of the following separated investment and commercial banking activities? The Sarbanes-Oxley (SOX) Act The Glass-Steagall Act O Gramm-Leach-Bliley Act The Financial Reform Act of 2010 Regulation of the Accounting Process True or False: The Financial Reform Act of 2010 was passed to ensure publicly traded banks and firms became more transparent about the financial condition of their company. O True O False