6. The term for commercial bank regulations designed to encourage banks to lend to socially important sectors such as housing and farming is ______________________ regulations.

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

7. Member countries of the Bank for International Settlements, including the U.S., reached agreement in 1988 on the use of new risk-based capital ratios for bank regulation. This agreement is called:

A. the Basel accord B. Glass-Steagall C. NAFTA D. the Tier II agreement E. the Treasury Accord

8. By U.S. regulation, FDIC deposit insurance is now generally limited to ________________ per depositor per bank. By European Union (EU) regulation, all EU countries must offer deposit insurance in a scheme funded by their financial institutions in the amount of ____________

A. $50,000, none B. $100,000, 50,000 C. $150,000, 75,000 D. $250,000, 100,000 E. unlimited, unlimited

9. The Depository Institutions Deregulation and Monetary Control Act of 1980 allowed banks to set their own

A. reserve requirements. B. capital ratios. C. interest rates on savings deposits. D. corporate loan interest rates. E. Fed fund rates

10. Which of the following is not a corrective action taken by regulators when a bank is identified as a problem bank?

A. Regulators may examine such banks frequently and thoroughly. B. Regulators may request that a bank boost its capital level or delay its plans to expand. C. Regulators can require that additional financial information be periodically updated to allow continued monitoring. D. Regulators have the authority to take legal action against a problem bank if the bank does not comply with their suggested remedies. E. All of the above are possible corrective actions taken by bank regulators.