Regulation of Deposit InsuranceTrue or False: Prior to 1991, all U.S. banks pald the same rate on FDIC Insurance, causing banks to engage in riskler behavlors, which is an example ofthe moral hazard problem.O TrueO FalseRegulation of DepositsWhich of the following removed restrictions on opening bank branches across state lines?O The Community Reinvestment Act (CRA)O The Riegle-Neal Interstate Banking and Branching Efficiency ActO The Garn-St. Germain ActO The Depository Institutions Deregulation and Monetary Control Act (DIDMCA)Regulation of Bank LoansWhich of the following are regulated to limit bank default risk exposure? Check all that apply.Loans to a single borrowerO Foreign loansO Loans to members within their communityO Highly leveraged transactions

Regulation of Deposit Insurance rue or False: Prior to 1991, all U.S. banks pald the same rate on FDIC Insurance, causing banks to engage in riskier behaviors, which is an example of he moral hazard problem. O True O False tegulation of Deposits Vhich of the following removed restrictions on opening bank branches across state lines? O The Community Reinvestment Act (CRA) The Riegle-Neal Interstate Banking and Branching Efficiency Act O The Garn-St. Germain Act O The Depository Institutions Deregulation and Monetary Control Act (DIDMCA)

Regulation of Deposit Insurance rue or False: Prior to 1991, all U.S. banks pald the same rate on FDIC Insurance, causing banks to engage in riskier behaviors, which is an example of he moral hazard problem. O True O False tegulation of Deposits Vhich of the following removed restrictions on opening bank branches across state lines? O The Community Reinvestment Act (CRA) The Riegle-Neal Interstate Banking and Branching Efficiency Act O The Garn-St. Germain Act O The Depository Institutions Deregulation and Monetary Control Act (DIDMCA)

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter6: Cash And Receivables

Section: Chapter Questions

Problem 12C: Researching GAAP Situation Hamilton Company operates in an industry with numerous competitors. It is...

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8 What is the function of Deposit Insurance Corporation? Select one: It does not give guarantee for a loan taken by insured bank. It eliminates competition between commercial banks. It keeps records of malpractices in the form of fraud, forgeries or outright theft committed by financial officers of insured banks or other financial institutions & publish them. It keeps the deposit from the insurance companies.
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Researching GAAP Situation Hamilton Company operates in an industry with numerous competitors. It is experiencing a shortage of cash and decides to obtain money from a large bank by using some of its receivables as collateral. Hamilton pledges 5100,000 of its receivables, is charged a 12% fee on this amount, and notifies these credit customers to make their payments directly to the bank. Hamilton transfers the receivables to the bank, and the bank assumes the servicing activities, but Hamilton is responsible for all bad debts which it reasonably estimates to be 2% of the receivables amount. When the balance of the receivables pledged is reduced to 3,000, Hamilton is required to repurchase the receivables, notify the remaining credit customers to make payments to it, and reassume the servicing activities. The bank has the right to sell the receivables, except to Hamiltons major competitor. Hamiltons president has asked you how to account for (and record) this transaction. Directions Research the related generally accepted accounting principles and prepare a short memo to the president that answers his question. Cite your reference and applicable paragraph numbers.