Thank you!

1.

Shareholders and managers of banks may prefer that banks be required to hold higher levels of capital because this would allow for higher share prices for the banks and larger bonuses for bank managers.

Question 11 options:

	True
	False

2.

A bank can increase its capital ratio by:

Question 12 options:

	a. Borrowing money or using purchased funds to buy back shares of its stock from shareholders.
	b. Selling assets.
	c. Increasing its dividend to encourage more investors to purchase its stock.
	d. Increasing its off-balance sheet activities.

3.

The Volcker rule, named for a former Fed chair:

Question 13 options:

	a. is intended to increase the powers of the Fed.
	b. states that the U.S. government will rescue certain large banks if necessary to reduce systemic risk in the financial system.
	c. sets limits on banks' proprietary trading.
	d. requires all banks to undergo annual stress tests.