Test 3 Sample Questions

Test 3 Sample Questions - Test 3 Sample Questions Chapter...

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Test 3 Sample Questions Chapter 18 1) Name one bank asset that counts as required reserves? 2) Does the Federal Reserve currently enforce contemporaneous or lagged reserve accounting? Lagged reserve accounting (2 pts) 3) What is a wholesale CD? Minimum denomination of $100,000 and negotiable, where ownership is transferrable in secondary market (2 pts) 4) What is a repurchase agreement? A collateralized federal funds transaction, usually backed by treasury securities (2 pts) 5) Name one disadvantage to banks for excessively undershooting their required reserves. Undershooting by more than 4% is penalized by an interest rate charge equal to the central bank’s discount rate plus a 2% mark-up against the shortfall; Frequent undershooting likely to attract scrutiny by regulators. (2 pts) 6) If the reserve computation period starts on Tuesday, September 1, what date does the corresponding reserve maintenance period start? Thursday, October 1. (2 pts) Chapter 19 7) Which federal agency currently insures thrift institutions? FDIC (2pts) 8) What act created the Federal Deposit Insurance Corporation (FDIC)? Glass-Steagall Act of 1933 (2 pts) 9) What year was deposit insurance coverage limit raised to $250,000? 2008 (2 pts)
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10) Name one outcome of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA)? Management of savings and loan insurance fund (FSLIC) transferred to the FDIC; Resolution Trust Corporation created (2 pts) 11) Of stockholder discipline , depositor discipline , or regulator discipline , which one is enhanced by capital requirements? Stockholder discipline (2 pts)
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This note was uploaded on 07/02/2011 for the course FINA 465 taught by Professor Berger during the Spring '11 term at South Carolina.

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Test 3 Sample Questions - Test 3 Sample Questions Chapter...

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