Econ 3030 - Money, Banking and the Economy » Fall 2021 » Quiz 5

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Question #1
U.S. banks are chartered by different government agencies depending on whether they are national or state banks.
A.   TRUE
B.   FALSE
Question #2
Which is not represented by CAMELSI in banking regulation?
A.   sensitivity to market risk
B.   information technology
C.   capital
D.   equity
E.   management 
F.   earnings
Question #3
Bank examiners assign bank ratings in the scale of
A.   1-5
B.   0 - 5
C.   0 - 3
D.   1-4
E.   0 - 4
Question #4
In order to be classified as well capitalized, a bank needs to have a risk based capital (RBC) ratio of at least ___________%.
A.   10
B.   2
C.   15
D.   8
Question #5
If a bank is rated critically undercapitalized, OCC can close the bank ___________.
A.   right away
B.   within one year
C.   within 90 days
D.   within 30 days
Question #6
The Basel Accord is ________________.
A.   a U.S. regulation.
B.   an international banking regulatory act
C.   a ski resort where international banking regulators meet
D.   a banking conference in Italy
Question #7
In the eye of banking regulation, commercial loans are riskier than mortgage loans.
A.   TRUE
B.   FALSE
Question #8
bank regulators are not concerned about ________.
A.   liquidity of the bank
B.   competency of management of the bank
C.   the nationality of the bank's owner
D.   the bank's asset quality and its riskiness
Question #9
FDIC insures bank deposits __________.
A.   up to a limited amount
B.   without limit, infinite amount

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