Chapter 2 - TM
In case of bankruptcy, what is the order of payment for the following: 1-Bankruptcy Trustee, 2-Senior Debt, 3- Common Shareholders, 4-Taxes owed, 5-Subordinated bond holders A. 2, 1, 4, 5, 3 B. 1, 2, 3, 4, 5 C. 2, 1, 5, 4, 3 D. 1, 2, 4, 5, 3
A. 2, 1, 4, 5, 3
The Glass Steegal Act was basically repealed through which act of Congress? A. Allowing Financial Holding Companies B. Abolishing Regulation Q in the Dodd Frank Act C. Allowing for the Fed to price its services through the Monetary Control Act D. Passing of Sarbanes Oxley
A. Allowing Financial Holding Companies
Which is true? A. FinCEN enforces counter-money laundering legislation and provides intelligence for investigations and prevention strategies. B. The FDIC provides deposit insurance and acts as a trustee for failed banks but does not supervise depository institutions. C. Dodd-Frank phased out the "dual nature" of the US banking system.
A. FinCEN enforces counter-money laundering legislation and provides intelligence for investigations and prevention strategies.
The Red Flags Rule applies to FIs and creditors with what types of consumer accounts? A. Accounts that hold funds for OBSA B. Accounts that permit multiple payments or transactions C. Foreign bank accounts held by US taxpayers D. Accounts for corporate signers with a consolidated FBAR filed by their organization
B. Accounts that permit multiple payments or transactions
What is another of these regulators/standard setters? A. International Organization for Standardization B. Central banks C. United Nations
B. Central banks
The Quantitative Easing done by the Federal Reserve during the great recession used which monetary policy tool? A. Decrease the reserve requirement B. Decrease the reserve requirement C. Buying bonds by the Federal Open Market Operations of the Fed D. Printing of money
C. Buying bonds by the Federal Open Market Operations of the Fed
Which approach to monitoring and managing banking system safety and soundness has a moral hazard? A. Minimum capital levels for banks in country (ratio of capital to at-risk assets and tiered capital) B. Impairment of capital rules C. Deposit insurance D. Regular monitoring and surveillance
C. Deposit insurance
Breaking the buck refers to A. The Federal Reserve issuing more dollars in the economy B. The allowance of MMF to have a NAV less than $1 C. Not permitting MMF to go below $1 NAV in most circumstances D. Not allowing stocks and bonds to go below $1 in value
C. Not permitting MMF to go below $1 NAV in most circumstances
The Monetary Control Act of 1980 assisted in loosening the economy by A. Allowing MMF to compete with checking accounts B. Allowing more competition among banks C. Reducing float in the payment system D. Having the Federal Reserve charge for its services
C. Reducing float in the payment system
In the US, which state is the recipient of unclaimed or abandoned rebates or gift cards? A. State where transaction occurred B. State that is residence of organization holding the property C. State that is residence of customer being escheated D. State where the unclaimed asset is listed on the books
C. State that is residence of customer being escheated
Which agencies are required to regulate OTC derivatives to reduce excessive risk taking? A. FDIC and DOJ B. FSOC and FINRA C. CFPB and Secret Service D. CFTC and SEC
D. CFTC and SEC
