STRAYER FIN100 WEEK 3 QUIZ (ANSWER 20/20) - 90293

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  • From: Mathematics, Algebra
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Question 1 1. The holding-company device to control two or more commercial banks: Answer has diminished in importance in recent years has increased in importance in recent years is limited to state chartered banks is sometimes described as chain banking 2 points Question 2 The Federal Deposit Insurance Corporation Improvement Act of 1991: Answer transferred the reserves and functions of the Federal Savings and Loan Insurance Corporation to the FDIC required that failed banks be handled in such a way as to provide the lowest cost to the FDIC increased federal deposit insurance from $40,000 to $100,000 for each account extended federal deposit insurance to S&L depositors 2 points Question 3 The Monetary Control Act: Answer extended the Fed’s control to thrift institutions and non-member commercial banks has resulted in more competition among depository institutions increased federal deposit insurance from $40,000 to $80,000 for each account established minimum capital requirements for banks with federal charters 2 points Question 4 The item on the assets side of a bank’s balance sheet that represents the largest proportion of bank assets is: Answer Deposits owner’s capital securities loans 2 points Question 5 The item on the liabilities and equity section of a bank’s balance sheet that represents the largest proportion of a typical bank’s assets is: Answer deposits owner’s capital securities federal funds 2 points Question 6 The item on the liabilities and equity section of a bank’s balance sheet that represents the smallest proportion of bank’s assets is: Answer deposits owner’s capital securities federal funds 2 points Question 7 An organization that sells or markets new securities issued by businesses to individuals and institutional investors is called a (n) Answer mutual fund investment bank insurance company brokerage firm 2 points Question 8 The primary purpose of this Act was to aid the savings and loan industry Answer Garn–St. Germain Depository Institutions Act Glass-Steagall Act Hunt Commission legislation Depository Institutions Deregulation and Monetary Control Act 2 points Question 9 An organization that sells shares in their firms to individuals and others and invests the proceeds in corporate and government securities is called a (n) Answer investment company investment bank insurance company brokerage firm 2 points Question 10 An organization that received contributions from employees and/or their employers and invests the proceeds on behalf of the employees for use during their retirement years is called a (n) Answer mutual fund savings bank pension fund retirement fund 2 points Question 11 The __________________, passed in 1968, requires the clear explanation of consumer credit costs and garnishment procedures (taking wages or property by legal means) and prohibits overly high-priced credit transactions. Answer Consumer Credit Expansion Act Credit Growth Act Consumer Credit Protection Act Consumer Safety Act 2 points Question 12 The Board of Governors: Answer is elected by the member banks is appointed by the Senate has seven members appointed for 14-year terms has seven members appointed for a term of 12 years 2 points Question 13 The banking system of the United States is a ___________ reserve system because banks are required by the Fed to hold reserves equal to a specified percentage of their deposits. Answer Required Fractional proportional multiplicative 2 points Question 14 The dynamic actions of the Federal Reserve System: Answer contribute to the smooth everyday functioning of the economy are designed to meet the credit needs of individuals and institutions support depositories and other institutions stimulate or repress the level of prices or economic activity 2 points Question 15 The Federal Reserve Banks are owned by: Answer commercial banks the U.S. Treasury national member banks of the Federal Reserve System member banks of the Federal Reserve System 2 points Question 16 The Board of Governors publishes ________________, which carries articles of current interest and offers a convenient source of the statistics compiled by the Fed. Answer the Federal Reserve Magazine the Federal Reserve Bulletin the Federal Reserve Journal the Federal Reserve News 2 points Question 17 The Fed shares its depository examining functions with: Answer the Federal Savings and Loan Insurance Corporation the FDIC, Comptroller of the Currency, and state agencies only the Comptroller of the Currency National Credit Union administration and the FDIC 2 points Question 18 ____________________________ requires disclosure of the finance charge and the annual percentage rate of credit along with certain other costs and terms to permit consumers to compare the prices of credit from differing sources. Answer Truth in Lending Act Equal Credit Opportunity Act Federal Trade Commission Improvement Act Fair Credit Billing Act 2 points Question 19 The percentage of deposits that must be held as reserves is called Answer the bank reserve percentage the required reserve ratio the excess reserve ratio the fractional reserve percentage 2 points Question 20 The purpose of Regulation Z is to: Answer make consumers aware of the costs of alternative forms of credit prohibit garnishment encourage depository institutions to help meet the credit needs of their communities for housing and other purposes regulate the overseas activities of member banks of the Federal Reserve System
Solution Description

Question 1

1. The holding-company device to control two or more commercial banks:

Answer

has diminished in importance in recent years

has increased in importance in recent years

is limited to state chartered banks

is sometimes described as chain banking

2 points

Question 2

The Federal Deposit Insurance Corporation Improvement Act of 1991:

Answer

transferred the reserves and functions of the Federal Savings and Loan Insurance Corporation to the FDIC

required that failed banks be handled in such a way as to provide the lowest cost to the FDIC

increased federal deposit insurance from $40,000 to $100,000 for each account

extended federal deposit insurance to S&L depositors

2 points

Question 3

The Monetary Control Act:

Answer

extended the Fed’s control to thrift institutions and non-member commercial banks

has resulted in more competition among depository institutions

increased federal deposit insurance from $40,000 to $80,000 for each account

established minimum capital requirements for banks with federal charters

2 points

Question 4

The item on the assets side of a bank’s balance sheet that represents the largest proportion of bank assets is:

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