1 - Bank holding companies can issue common stock to raise equity capital?
True or False
2 - Between 1/2008 and 12/2009 the monetary base of the Federal Reserve System increased from $1 trillion US. dollars to $3 trillion US dollars.
True or False
3 - If the Federal Reserve does not approve the quantitative or qualitative capital plans of a bank holding company that bank holding company’s ability to distribute capital to shareholders is constrained
True or False
4 - The ratio of common equity to risk weighted assets of Bank Holding Companies has declined since 2009
True or False
5 - The Federal Reserve considers bank capital essential to a bank holding company’s ability to absorb losses and continue operations and to lend to businesses and consumers
True or False
6 - Liquidity is the ability to meet cash flow needs on a timely basis at a reasonable cost
True or False
7 - In its 2014 Comprehensive Capital Analysis Review (released March 2014) the Board of Governors objected to the capital plans of Citigroup Inc.; HSBC North America Holdings Inc.; RBS Citizens Financial Group, Inc.; and Santander Holdings USA, Inc. based on a failure of each banks capital position to be adequate after the stress tests were run
True or False
8 - In its 2014 Comprehensive Capital Analysis Review (released March 2014) the Board of Governors of the Federal Reserve objected to the capital plan of Zions Bancorporation because the firm lacked liquid assets
True or False
9 - The Board of Governors of Federal Reserve objected to Citigroup’s capital plan in its 2014 Comprehensive Capital Analysis Review because Cititgroup had excessive exposure to the debt of Greece and other European countries that were in fiscal difficulty
True Or False
10 - When considering an institution's capital plan, the Federal Reserve considers only quantitative factors. The only factor that matters is a firm's capital ratios under severe economic and financial market stress. After the Federal Reserve objects to a capital plan, the institution may only make capital distributions that are equal to the distributions made in the previous year
True or False