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.   earnings
B.   management 
C.   equity
D.   sensitivity to market risk
E.   information technology
F.   capital
Question #3
Bank examiners assign bank ratings in the scale of
A.   0 - 3
B.   1-5
C.   0 - 5
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.   8
C.   2
D.   15
Question #5
If a bank is rated critically undercapitalized, OCC can close the bank ___________.
A.   right away
B.   within 30 days
C.   within one year
D.   within 90 days
Question #6
The Basel Accord is ________________.
A.   an international banking regulatory act
B.   a U.S. regulation.
C.   a banking conference in Italy
D.   a ski resort where international banking regulators meet
Question #7
In the eye of banking regulation, commercial loans are riskier than mortgage loans.
A.   FALSE
B.   TRUE
Question #8
bank regulators are not concerned about ________.
A.   the bank's asset quality and its riskiness
B.   liquidity of the bank
C.   the nationality of the bank's owner
D.   competency of management of the bank
Question #9
FDIC insures bank deposits __________.
A.   without limit, infinite amount
B.   up to a limited amount

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