Exam (elaborations)
GCU ECN-460 Final Review Questions And Answers Latest Update
- Course
- ECN 460
- Institution
- Arizona State University
GCU ECN-460 Final Review Questions And Answers Latest Update
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Solution 2024/2025Pepper
GCU ECN-460 Final Review Questions And
Answers Latest Update
National Bank Act of 1863 create the dual banking system and the OCC.
True
McFadden Act of 1927 prohibited branching across state lines and forced all
national banks to conform to the branching regulations in the state in which
they reside
True
Glass-Steagall Act of 1933 clarified status of BHCs; FR to supervise BHCs
Separated Traditional banking industry from the securities industry
False
Garn-St.Germain of 1982 gave the FDIC power to merge banks across state
lines
True
Riegle-Neal Interstate Banking & Branching Efficiency Act of 1994
overturned McFadden and allowed interstate banking and branching
True
Gramm-Leach-Bliley Act of 1999 repealed Glass -Steagall; no separation
between banking and the securities industries
True
The shadow banking system consists of originators, bundlers, servicers,
distributors and transformers
False
, Solution 2024/2025
Pepper
Securitization is the process of transforming very liquid financial assets into
marketable capital
markets instruments.
False
Financial crises are characterized by asset price bubble, bank panics,
asymmetric information becoming a source of contagion and five distinct
phases.
False
Financial derivatives are instruments with payoffs linked to previously
issued securities.
True
The haircut is a mark-up or premium paid in the repo loan market.
True
Assets in an asset-price bubble environment represent fair or intrinsic
values
False
The source of contagion in a bank panic is the free-rider problem.
False
Credit spread is a premium above treasury for CCC bonds.
False
An example of moral hazard is insured depositors having less incentive to
monitor banks or withdraw deposits when IDIs engage in excessive risk
taking
True
Only national banks are subject to reserve requirements, while state banks
are subject to state imposed reserve requirements.
False
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