Question

The Federal Deposit Insurance Corporation (FDIC) raised the insurance limit on bank

account deposits from ____ to _____ in ______.

A) zero; $25,000; 1932

B) $25,000; $100,000; 1933

C) $100,000; $250,000; 2008

D) $250,000; $1,000,000; 2008

Though an IMF/World Bank study found that ________, the results depend on the

________.

A) negative effects of deposit insurance outweighed the positive effects; amount of

bank regulation

B) positive effects of deposit insurance outweighed the negative effects; size of the

bank

C) larger banks fail less than small ones; size of risky loans

D) risky loans are more likely to be made by large banks; value of checkable deposits

Banks chartered by the federal government are called ________, and banks chartered by

a state are called ________.

A) federal banks; local banks

B) national banks; state banks

C) commercial banks; community banks

D) federal banks; state banks

Because of the ________, Microsoft cannot merge with Bank of America.

A) Sarbanes-Oxley Act

B) Sherman Antitrust Act

C) Glass-Steagall Act

D) Bank Holding Company Act

Answer 1

1.  C) $100,000; $250,000; 2008

The Federal Deposit Insurance Corporation (FDIC) raised the insurance limit on bank account deposits from $100,000  to $250,000  in 2008.

This was a temporary raise, the legislation further said that the limit on deposits will return to $100,000 but in July 2010 this figure (i.e. $250,000) was made permanent.

2. A) negative effects of deposit insurance outweighed the positive effects; amount of bank regulation

Though an IMF/World Bank study found that negative effects of deposit insurance outweighed the positive effects, the results depend on the amount of bank regulation.

3. B) national banks; state banks

Banks chartered by the federal government are called national banks, and banks chartered by a state are called state banks.

4. D) Bank Holding Company Act

Because of the Bank Holding Company Act, Microsoft cannot merge with Bank of America.