bank exam with correct answers ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
Historically, a commercial bank was defined as a firm that: ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
A. accepted NOW accounts and made consumer loans.
||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
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?
||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
A. Guarantee minimal profitability of the banking system.
||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
B. Provide monetary stability.
||\\||\\ ||\\||\\ ||\\||\\
C. Ensure the safety and soundness of banks.
||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
D. Provide a competitive financial system.
||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
E.Protect consumers from abuses by banks. - correct ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
answer✔✔A
1. A primary purpose of maintaining the safety and soundness
||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
of banks is to:
||\\||\\ ||\\||\\ ||\\||\\
,A.encourage loan growth. ||\\||\\ ||\\||\\
B.protect depositors. ||\\||\\
C. ensure liquidity for the stock market.
||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
D. prevent discrimination.
||\\||\\ ||\\||\\
E.minimize bank losses. - correct answer✔✔B ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
Which of the following is not represented in the CAMELS
||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
ratings.
A. Cash adequacy
||\\||\\ ||\\||\\
B. Asset quality
||\\||\\ ||\\||\\
C. Management quality
||\\||\\ ||\\||\\
D. Liquidity
||\\||\\
E. Sensitivity to market risk. - correct answer✔✔A
||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
1. A formal regulatory document that prescribes corrective
||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
action for a problem institution is called a:
||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
A. cease and desist order.
||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
B. capital request.
||\\||\\ ||\\||\\
C. memorandum of understanding.
||\\||\\ ||\\||\\ ||\\||\\
D. quality assurance directive.
||\\||\\ ||\\||\\ ||\\||\\
,E. national bank order. - correct answer✔✔c
||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
A legal document that orders a firm to sop an unfair practice
||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
under full penalty of law is a: ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
A. cease and desist order.
||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
B. capital request.
||\\||\\ ||\\||\\
C. memorandum of understanding.
||\\||\\ ||\\||\\ ||\\||\\
D. quality assurance directive.
||\\||\\ ||\\||\\ ||\\||\\
E. national bank order. - correct answer✔✔A
||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
1. A new charter to start a state bank must be obtained from
||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
the:
A.Federal Reserve. ||\\||\\
B. Federal Deposit Insurance Corporation.
||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
C. Office of the Comptroller of the Currency.
||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
D. Office of Thrift Supervision.
||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
E. State banking department. - correct answer✔✔E
||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
A new charter to start a federal savings association is obtained
||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
from the: ||\\||\\
, A. Office of the Comptroller of the Currency.
||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
B.National Credit Union Administration. ||\\||\\ ||\\||\\ ||\\||\\
C. Office of Thrift Supervision.
||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
D. State banking department.
||\\||\\ ||\\||\\ ||\\||\\
E. Federal Reserve - correct answer✔✔C
||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
National and state charters are available for all of the following
||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
except:
A. credit unions.
||\\||\\ ||\\||\\
B. commercial banks.
||\\||\\ ||\\||\\
C. savings associations.
||\\||\\ ||\\||\\
D.Federal Reserve banks. ||\\||\\ ||\\||\\
E. National and state charters are available for all of the above. -
||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
correct answer✔✔D ||\\||\\ ||\\||\\
The primary federal regulator of state banks that are not
||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
members of the Fed is the: ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
A.FDIC.
B. Office of the Comptroller of the Currency.
||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
C. Office of Thrift Supervision.
||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
Historically, a commercial bank was defined as a firm that: ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
A. accepted NOW accounts and made consumer loans.
||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
B. accepted demand deposits and made business loans.
||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
c. accepted government deposits and made public loans.
||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
D. accepted demand deposits and made consumer loans.
||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
E. is regulated by the Federal Reserve. - correct answer✔✔B.
||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
accepted demand deposits and made business loans. ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
1. Which of the following is not a purpose of bank regulation?
||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
A. Guarantee minimal profitability of the banking system.
||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
B. Provide monetary stability.
||\\||\\ ||\\||\\ ||\\||\\
C. Ensure the safety and soundness of banks.
||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
D. Provide a competitive financial system.
||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
E.Protect consumers from abuses by banks. - correct ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
answer✔✔A
1. A primary purpose of maintaining the safety and soundness
||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
of banks is to:
||\\||\\ ||\\||\\ ||\\||\\
,A.encourage loan growth. ||\\||\\ ||\\||\\
B.protect depositors. ||\\||\\
C. ensure liquidity for the stock market.
||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
D. prevent discrimination.
||\\||\\ ||\\||\\
E.minimize bank losses. - correct answer✔✔B ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
Which of the following is not represented in the CAMELS
||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
ratings.
A. Cash adequacy
||\\||\\ ||\\||\\
B. Asset quality
||\\||\\ ||\\||\\
C. Management quality
||\\||\\ ||\\||\\
D. Liquidity
||\\||\\
E. Sensitivity to market risk. - correct answer✔✔A
||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
1. A formal regulatory document that prescribes corrective
||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
action for a problem institution is called a:
||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
A. cease and desist order.
||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
B. capital request.
||\\||\\ ||\\||\\
C. memorandum of understanding.
||\\||\\ ||\\||\\ ||\\||\\
D. quality assurance directive.
||\\||\\ ||\\||\\ ||\\||\\
,E. national bank order. - correct answer✔✔c
||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
A legal document that orders a firm to sop an unfair practice
||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
under full penalty of law is a: ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
A. cease and desist order.
||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
B. capital request.
||\\||\\ ||\\||\\
C. memorandum of understanding.
||\\||\\ ||\\||\\ ||\\||\\
D. quality assurance directive.
||\\||\\ ||\\||\\ ||\\||\\
E. national bank order. - correct answer✔✔A
||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
1. A new charter to start a state bank must be obtained from
||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
the:
A.Federal Reserve. ||\\||\\
B. Federal Deposit Insurance Corporation.
||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
C. Office of the Comptroller of the Currency.
||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
D. Office of Thrift Supervision.
||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
E. State banking department. - correct answer✔✔E
||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
A new charter to start a federal savings association is obtained
||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
from the: ||\\||\\
, A. Office of the Comptroller of the Currency.
||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
B.National Credit Union Administration. ||\\||\\ ||\\||\\ ||\\||\\
C. Office of Thrift Supervision.
||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
D. State banking department.
||\\||\\ ||\\||\\ ||\\||\\
E. Federal Reserve - correct answer✔✔C
||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
National and state charters are available for all of the following
||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
except:
A. credit unions.
||\\||\\ ||\\||\\
B. commercial banks.
||\\||\\ ||\\||\\
C. savings associations.
||\\||\\ ||\\||\\
D.Federal Reserve banks. ||\\||\\ ||\\||\\
E. National and state charters are available for all of the above. -
||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
correct answer✔✔D ||\\||\\ ||\\||\\
The primary federal regulator of state banks that are not
||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
members of the Fed is the: ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
A.FDIC.
B. Office of the Comptroller of the Currency.
||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
C. Office of Thrift Supervision.
||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
