1. The Securities Act of 1933:
A. Provides for transparency in financial statements
B. Prohibits misrepresentation and fraudulent activities
C. Was followed by the Securities and Exchange Act which authorizes the SEC to enforce securities laws
D. All of the above
2. Which Act prohibited banks from participating in securities trading?
A. Securities Act of 1933
B. Exchange Act of 1934
C. Bank Holding Act of 1956
D. McFadden Act of 1927
E. Banking Act of 1933
3. Which Act prohibited interstate branching?
A. Securities Act of 1933
B. McFadden Act of 1927
C. Exchange Act of 1934
D. Banking Act of 1933
E. Bank Holding Act of 1956
4. Bank Management: The balance sheets of savings institutions consist mostly of:
A. Consumer loans and high quality corporate bonds
B. Commercial loans and small time deposits
C. Residential mortgages and corporate bonds
D. Residential mortgages and time deposits
5. Bank Management: Bank liabilities consist mostly of
A. Reserves
B. Demand and time deposits
C. Holdings of investment securities
D. Savings deposits
E. Real estate and commercial loans
6. A bank chartered by the federal government in the United States is known as a:
A. national bank
B. universal bank
C. merchant bank
D. member bank
E. none of the above
7. FLASHBACK! The agreement that pledged Europe to a single currency and a unified financial system was the:
A. Basle Agreement
B. Treaty of Rome
C. European Monetary Treaty
D. EC Memorandum
E. Maastricht Treaty
8. ___ is considered the most important aspect of financial regulation in the United States
A. Securities trading
B. Fair competition
C. Equal housing opportunity
D. Information disclosure
E. Low inflation and high employment
9. Which financial institution receives its corporate charter from the Office of the Comptroller of the Currency (OCC)?
A. State banks
B. National banks
C. Credit unions
D. Savings and Loans Associations
E. All receive their charter from the OCC
10. Which regulatory agency is entrusted with the following duties? [I] act as a check on state banking commissions [II] review the adequacy of bank capital [III] evaluate the earnings prospects of banks and nonbanks [IV] assess the character and risk capacity of bank management, and [V] insure all banks and thrifts
A. Federal Reserve System
B. Comptroller of Currency
C. SEC
D. FDIC
E. CFTC