Question

1. The government safety net for banks consists of: (Pick the TWO correct options below.)

	Federal Deposit Insurance.
	A guarantee that no investors in banks will lose money.
	An implicit understanding that some banks, if they have a negative bank capital, will be saved by an infusion of capital or a take-over if they are considered "too big to fail."
	A guarantee that nobody working in banking will lose their job in case of a bank failure.

2. All the following are current regulations on banks, EXCEPT:

	Banks need to show their books to on-site examiners.
	Banks need to hold a certain amount of capital relative to the amount of assets on their balance sheet.
	Banks need to have a system for risk management in the bank.
	Banks are not allowed to hold bonds.

Answer 1

.Answer 1:

Federal Deposit Insurance and

An implicit understanding that some banks, if they have a negative bank capital, will be saved by an infusion of capital or a take-over if they are considered "too big to fail."

Explanation:-

The sefty net for banks includes Deposit insurance and bank will be saved by an infusion of capital or a take-over if their failure would be disastrous to the economy

A system of protection for bank customers provided through federal legislation

safety net for banks not protract investors for loss of money and employees for lose of job .

Answer 2:

Banks are not allowed to hold bonds

Explanation:-

All the following are current regulations on banks.

Banks need to show their books to on-site examiners.
Banks need to hold a certain amount of capital relative to the amount of assets on their balance sheet.
Banks need to have a system for risk management in the bank.

Banks are not allowed to hold bonds is not current regulations on banks