9.The government regulates financial market and financial institutions for three main reasons. What are those reasons? I. To ensure the soundness of financial market and institution II. To ensure the soundness of the financial system III. To increase the information available to the investors IV. To increase the information available to the users. V. To improve control of the financial information VI. To improve control of financial system. a. I, II, V b. I, III, IV c. II, III, IV d. II, III, VI

9.The government regulates financial market and financial institutions for three main reasons. What are those reasons? I. To ensure the soundness of financial market and institution II. To ensure the soundness of the financial system III. To increase the information available to the investors IV. To increase the information available to the users. V. To improve control of the financial information VI. To improve control of financial system. a. I, II, V b. I, III, IV c. II, III, IV d. II, III, VI

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter4: The Adjustment Process

Section: Chapter Questions

Problem 2MC: Which of the following is the federal, independent agency that provides oversight of public...

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Which of the following is the federal, independent agency that provides oversight of public companies to maintain fair representation of company financial activities for investors to make informed decisions? A. IRS (Internal Revenue Service) B. SEC (Securities and Exchange Commission) C. FASB (Financial Accounting Standards Board) D. FDIC (Federal Deposit Insurance Corporation)
Which one of the following components of internal control over financial reporting sets the tone for the organization? a. Risk assessment. b. Control environment. c. Information and communication. d. Monitoring.
14. The government normally sets the following to regulate the behavior of the players in the financial markets, except: a. Standardized forecasting and risk assessment b. Minimum capital requirements c. Control of new players d. Full disclosure of information
Which of the following is not a category of bank regulations? a. The government safety net. b. Capital requirements. c. Competition Policy. d. Chartering and examination.
Governments require some banks to conduct stress tests of their financial situation. What type of financial regulation is this requirement? A. Disclosure requirements B. Assessment of risk management C. Restrictions on competition D. Consumer protection
Which one of the following statements is a guiding principle of financial regulation? Question 32Answer a. Regulatory measures on the senior management ensure that decisions are taken in the best interest of the bank. b. Innovation is to be discouraged in the wake of the sub-prime lending debacle. c. Strict monitoring is needed to prevent excessive profits. d. The financial regulations imposed should be proportional to the advantages that are anticipated from the regulations.
Self-regulation, regulation by the government and regulation by a governmental agency are threeapproaches to the regulation of financial markets. Discuss and explain their differences
Which of the following is true of financial institutions? A. Financial institutions are the regulators of interest rates and other returns in financial markets. B. Financial institutions are accountable and responsible in reporting financial information for publicly-traded corporations. C. Financial institutions are required by the Sarbanes-Oxley Act to disclose the environment-friendly measures taken by investment corporations.
Identify which one of the following statement is correct? a. Banks are basically financial intermediaries between the depositors and the creditors b. Banks are basically financial intermediaries between the debtors and the borrowers c. Banks are basically financial intermediaries between the depositors and the borrowers d. Banks are basically financial intermediaries between the government and the borrowers
30 Which of the following is NOT the main function of Ministry of Finance (MoF)? Select one: To propose bills related to the management of government employees, particularly bills related to staffing, salaries, benefits and pensions To formulate financial management and accounting processes, procedures and standards to be implemented by all Government. To formulate and implement fiscal and monetary policies in order to ensure effective and efficient distribution and management of financial resources To regulate all matters relating to securities and futures contracts.
Which of the following is not a guiding principle of financial regulation? Question 3Answer a. Innovation should be discouraged to ensure that financial products and services offered conform to the set rules and regulations. b. Strict monitoring should be set up to ensure that international standards are met. c. Prudence and effectiveness should be applied when using financial resources of a country. d. Regulatory measures on the senior management of the financial institutions so as to ensure that decisions taken are in the best interest to the financial market.
16- Banks advise their clients relating to investment decisions as specialists. Which function and service of banks are referred to? a. Discounting of Bills of Exchange b. Miscellaneous Functions of the banks c. Agency Functions d. Investment of Funds