POB313 CH 1-5 UPDATED QUESTIONS AND CORRECT
ANSWERS
Question:
1. What new federal agency was created by the Dodd-Frank Act?
Answer:
Consumer Financial Pro-tection Bureau
Question:
2. What service specializes in cashing checks for a fee?
Answer:
Money service businesses
Question:
3. What group supervises nonmember state banks?
Answer:
Federal Deposit Insurance Corporation
Question:
4. What federal law requires federal bank regulators to periodically evaluate how financial
institutions meet the credit needs of their communities?
Answer:
Community Reinvestment Act
Question:
5. New restrictions on gift card expiration dates and inac-tivity fees were imposed by the:
Answer:
Credit CARD Act
Question:
6. What law was passed by Congress to restore investor confidence in publicly held corporations?
Answer:
Sarbanes-Oxley Act
Question:
7. A corporation that owns or controls one or more banks is a(n):
Answer:
Bank holding company
Question:
8. What was a factor in causing the Great Depression?
Answer:
No margin requirements
Question:
9. Drafts of regulations are published in the:
, Answer:
Federal Register
Question:
10. The future of banking will likely include:
Answer:
More innovation
Question:
11. What is an example of financial intermediary?
Answer:
Credit union
Question:
12. What tool is used by the Federal Reserve to control the money supply?
Answer:
Changing the discount rate
Question:
13. What is the ability of a bank or business to meet its current obligations called?
Answer:
liquidity
Question:
14. The chief risk with a loan is:
Answer:
credit risk
Question:
15. What is the interest rate the Federal Reserve charges banks for the short-term use of its funds?
Answer:
discount rate
Question:
16. A(n) ______ bank has been in operation for five years or less.
Answer:
de novo
Question:
17. The difference between assets and liabilities is:
Answer:
equity
Question:
18. The annual financial report that public companies file with the SEC is called the:
Answer:
Form 10-K
ANSWERS
Question:
1. What new federal agency was created by the Dodd-Frank Act?
Answer:
Consumer Financial Pro-tection Bureau
Question:
2. What service specializes in cashing checks for a fee?
Answer:
Money service businesses
Question:
3. What group supervises nonmember state banks?
Answer:
Federal Deposit Insurance Corporation
Question:
4. What federal law requires federal bank regulators to periodically evaluate how financial
institutions meet the credit needs of their communities?
Answer:
Community Reinvestment Act
Question:
5. New restrictions on gift card expiration dates and inac-tivity fees were imposed by the:
Answer:
Credit CARD Act
Question:
6. What law was passed by Congress to restore investor confidence in publicly held corporations?
Answer:
Sarbanes-Oxley Act
Question:
7. A corporation that owns or controls one or more banks is a(n):
Answer:
Bank holding company
Question:
8. What was a factor in causing the Great Depression?
Answer:
No margin requirements
Question:
9. Drafts of regulations are published in the:
, Answer:
Federal Register
Question:
10. The future of banking will likely include:
Answer:
More innovation
Question:
11. What is an example of financial intermediary?
Answer:
Credit union
Question:
12. What tool is used by the Federal Reserve to control the money supply?
Answer:
Changing the discount rate
Question:
13. What is the ability of a bank or business to meet its current obligations called?
Answer:
liquidity
Question:
14. The chief risk with a loan is:
Answer:
credit risk
Question:
15. What is the interest rate the Federal Reserve charges banks for the short-term use of its funds?
Answer:
discount rate
Question:
16. A(n) ______ bank has been in operation for five years or less.
Answer:
de novo
Question:
17. The difference between assets and liabilities is:
Answer:
equity
Question:
18. The annual financial report that public companies file with the SEC is called the:
Answer:
Form 10-K
