2. Bank operation regulation

Regulation of Deposit Insurance

Which of the following scenarios best represents a premium that most banks pay for federal deposit insurance?

Credit Ally Bank has $200 million in deposits and pays a premium of $3,600,000.

Dominion Bank has $500 million in deposits and pays a premium of $30,000.

Core Financial Bank has $200 million in deposits and pays a premium of $2,250,000.

Lifespark Financial Bank has $300 million in deposits and pays a premium of $450,000.

Regulation of Deposits

Which of the following allowed banks to begin offering accounts to customers who had no maturity or interest rate ceiling, and allowed the banks opportunities to acquire failing institutions across geographic boundaries?

The Sarbanes-Oxley (SOX) Act

The Garn-St. Germain Act

The Riegle-Neal Interstate Banking and Branching Efficiency Act

The Community Reinvestment Act (CRA)

Regulation of Bank Loans

Which of the following are regulated to limit bank default risk exposure? Check all that apply.

Highly leveraged transactions

Loans to a single borrower

Foreign loans

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 debt securities, including their own assessment of risk?

Gramm-Leach-Bliley Act

The Financial Reform Act of 2010

The Depository Institutions Deregulation and Monetary Control Act (DIDMCA)

The Glass-Steagall Act

Regulation of Securities Services

Which of the following allows single holding companies to engage in standard banking activities, securities trading, underwriting, insurance, etc.?

Gramm-Leach-Bliley Act

The Glass-Steagall Act

The Sarbanes-Oxley (SOX) Act

The Financial Reform Act of 2010

Regulation of the Accounting Process

Which of the following was passed to ensure publicly traded banks and firms became more transparent about the financial condition of their company?

The Financial Reform Act of 2010

The Glass-Steagall Act

The Sarbanes-Oxley (SOX) Act

Gramm-Leach-Bliley Act