bank exam with correct answers

bank exam with correct answers ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\




Historically, a commercial bank was defined as a firm that: ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\




A. accepted NOW accounts and made consumer loans.
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B. accepted demand deposits and made business loans.
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c. accepted government deposits and made public loans.
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D. accepted demand deposits and made consumer loans.
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E. is regulated by the Federal Reserve. - correct answer✔✔B.
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accepted demand deposits and made business loans. ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\




1. Which of the following is not a purpose of bank regulation?
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A. Guarantee minimal profitability of the banking system.
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B. Provide monetary stability.
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C. Ensure the safety and soundness of banks.
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D. Provide a competitive financial system.
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E.Protect consumers from abuses by banks. - correct ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\




answer✔✔A


1. A primary purpose of maintaining the safety and soundness
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of banks is to:
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,A.encourage loan growth. ||\\||\\ ||\\||\\




B.protect depositors. ||\\||\\




C. ensure liquidity for the stock market.
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D. prevent discrimination.
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E.minimize bank losses. - correct answer✔✔B ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\




Which of the following is not represented in the CAMELS
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ratings.
A. Cash adequacy
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B. Asset quality
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C. Management quality
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D. Liquidity
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E. Sensitivity to market risk. - correct answer✔✔A
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1. A formal regulatory document that prescribes corrective
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action for a problem institution is called a:
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A. cease and desist order.
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B. capital request.
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C. memorandum of understanding.
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D. quality assurance directive.
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,E. national bank order. - correct answer✔✔c
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A legal document that orders a firm to sop an unfair practice
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under full penalty of law is a: ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\




A. cease and desist order.
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B. capital request.
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C. memorandum of understanding.
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D. quality assurance directive.
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E. national bank order. - correct answer✔✔A
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1. A new charter to start a state bank must be obtained from
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the:
A.Federal Reserve. ||\\||\\




B. Federal Deposit Insurance Corporation.
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C. Office of the Comptroller of the Currency.
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D. Office of Thrift Supervision.
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E. State banking department. - correct answer✔✔E
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A new charter to start a federal savings association is obtained
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from the: ||\\||\\

, A. Office of the Comptroller of the Currency.
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B.National Credit Union Administration. ||\\||\\ ||\\||\\ ||\\||\\




C. Office of Thrift Supervision.
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D. State banking department.
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E. Federal Reserve - correct answer✔✔C
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National and state charters are available for all of the following
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except:
A. credit unions.
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B. commercial banks.
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C. savings associations.
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D.Federal Reserve banks. ||\\||\\ ||\\||\\




E. National and state charters are available for all of the above. -
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correct answer✔✔D ||\\||\\ ||\\||\\




The primary federal regulator of state banks that are not
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members of the Fed is the: ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\




A.FDIC.
B. Office of the Comptroller of the Currency.
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C. Office of Thrift Supervision.
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