Which of the following statements about the Financial Industry Regulatory Authority (FINRA) is false:

a.FINRA is a federal agency supervised by the SEC

b.FINRA regulates broker-dealers who do business with thepublic

c.FINRA supervises self-regulatory organizations (SROs)involved in the securities business

d.FINRA is an independent entity that promulgates rulesthat discipline erring broker-dealer firms and individualbrokers and dealers.

e.FINRA is subject to the control of the SEC which mayamend or reject FINRA's rules

Which of the following statements are true:

a.A study by government economists concluded that whenbanks fail within one year of an onsite bank examination,the CAMELS rating had roughly the same predictive valueas a computer model using data from quarterly call reports.

b.When a bank fails more than one year after an onsite bankexamination, the computer model based on quarterly callreports was significantly more accurate.

c.A study of government economists concluded that an onsiteexaminations reveal more about safety and soundness ofbanks because it provides a moreaccurate assessments ofhow a bank would perform in a financial crisis.

d.A report of examination written after an onsite bankexamination provides merely a snapshot of the banksfinancial soundness at the time of the examination and doesnot attempt to predict the bank's future performance.

A cease-and-desist hearing is conducted by an administrative law judge who then renders a final decision that can be appealed under the Administrative Procedure Act to the U.S. Court of Appeals for the D.C. Circuit.True or False?

Because the FDIC insures the deposits in all federal and state banks and acts the receiver for all banks when the fail, FDIC also makes the decision to close a bank and place it into receivership.True or False?

. The principle of diversification and the law of large numbers are concepts used in:

a.The assessment of the riskiness of bank assets

b.Concepts applied to the suitability standard in broker-dealercases

c.Principles used to predict how many banks are likely to failin a financial crisis

d.Concepts used in the insurance business

e.Concepts used to measure capital adequacy