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- In government programs of bank supervision, what is being supervised?The following are protective mechanisms that have been developed by regulators to promote the safety and soundness of the banking system EXCEPT: Select one: a. encouraging banks to produce timely accounting statements and reports. b. encouraging banks to limit lending to a single customer to no more than 10% of capital. c. the periodic monitoring of banks. d. encouraging banks to rely more on deposits rather than debt or capital as a cushion against failure. e. the provision of deposit insurance.which of the following is not an objective of regulation and supervision of banks? To protect the interest of bank depositors To ensure liquidity and solvency of banks To secure and ensure depositors To ensure orderly development and conduct of banking operations
- evaluate and discuss four reasons why it is necessary to regulate banks, especially within the context of the COVID pandemic.Bank regulation exists because public authorities are convinced that a. the balance between public interest and safety does not affect profitability, and should be removed from the hands of managers. b. the balance between bank safety and public interest can best be obtained by reliance on the market. c. the balance between bank profitability and public interest cannot be handled with legislation, but can be handled with regulation. d. the balance between bank profitability and safety cannot be left to profit-maximizing managers.When regulators engage in macroprudential regulation, they focus on O the safety and soundness of the entire financial institution. O the credit standards of all loans held by the financial institution. O the safety and soundness of the financial system in aggregate. O the safety and soundness of cach liability of the financial institution. A
- What factors have led to the dominance of the banks? Prove explanations in detail with an exampleOnly one statement is 100% correct. Which one? State agencies charter and regulate national banks. The Federal Deposit Insurance Corporation (FDIC) is the oldest U.S. commercial bank regulators. The Federal Reserve System (FRS) has regulatory power over nationally chartered banks and their holding companies and state banks that opt in to the FRS. The Office of the Comptroller of the Currency (OCC) charters and regulates state banks.why it is necessary to regulate banks, especially within the context of the COVID pandemic. give four reasons
- Which of the following statements is NOT true? A. The banking sectors in Canada and the UK are dominated by a few large banks. B. The US banking industry is less competitive than the banking sectors in other advanced economies. C. Relative to other US industries, there are a large number of small banks.Which of the following is a key feature explaining the phenomenon of a bank run? It is impossible for a bank to be perfectly liquid banks guarantee the owners of demand deposits immediate cash on demand banks promise to satisfy withdrawal requests on a first come first served basis all of the above none of the aboveWhich of the following is classified as a bank function? Acting as an intermediary Acting as a lender of last resort Providing liquidity Diversifying risk Diversifying liquidity