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How did competitive forces lead to the repeal of the Glass-Steagall Act’s separation of the banking and the securities industries
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- How might possibilities for regulatory capture contribute to the large number of financial regulators and deposit insurance funds?Why are not more resources allocated to the prudential regulation of the banking sector, which is plainly necessary to prevent financial crises?Banking regulation suffers from the principal-agent problem. Describe how this problem relates to regulators and politicians.
- From the equity-deposit insurance game, describe the differences in incentives resulting from the differnece in regulation between the traditional and shadow sectors.Explain what is the function of the following components in a country's financial system. regulators, commercial banks, investment banks and non-banking intermediariesIdentify regulators in sectors apart from financial services, that should be involved in the Central Bank’s Fintech Regulation Committee. Motivate why these regulators .should be involved.
- Which of the following best defines a financial intermediary? a collection of stocks and bonds issued to investors an asset sold by a company which entitles the buyer to partial ownership a claim by a buyer to a future payment by a seller a financial institution that transforms investor funds into financial assetsOutline and critically evaluate the main arguments in the literature on bank competition and excessive risk taking by banksWhat do the authors mean when they state that financial intermediaries can achieve economies of scale with respect to transaction costs? A. Intermediaries can spread transaction costs across larger transaction volumes, so the cost per unit is lower. B. Intermediaries tend to specialize in certain types of transactions, so their costs are lower because they operate at lower volume than other types of financial firms.
- The ___________ is the largest and best-known securities exchange.The Securities and Exchange Commission (SEC) is an independent agency whose function is to administer federal securities laws. True or FalseBank regulators are having a dilemma about whether to discourage banks from becoming a monopoly and at the same time promoting competition. Why?