Question

In: Economics

If a bank's assets are $200 and the value of its weighted assets is $125, the...

If a bank's assets are $200 and the value of its weighted assets is $125, the capital

requirements under the U.S. minimum equity ratio is _______, and the Basel Accord

requirement is _______.

A) $16; $6.25

B) $10; $10

C) $16; $10

D) There is not enough information provided to answer the question.

A structured investment vehicle (SIV) was perceived as safe because:

A) it owned large quantities of mortgage-backed securities.

B) it was highly regulated.

C) it had strong links to the banks.

D) its assets had a low risk.

A state-chartered bank, which is not a member of the Federal Reserve System, is

regulated by:

A) the Office of the Comptroller of the Currency.

B) the state agency that chartered it.

C) the FDIC.

D) the state agency that chartered it and the FDIC.

The quarterly financial statement that provides regulators with information about a

bank's balance sheet and income statement is called a:

A) CAMELS sheet.

B) bank audit.

C) call report.

D) financial statement.

Solutions

Expert Solution

(1) Answer :- (B) $10; $10

*Explanation :- There Are Tier 1 Ratio Use On Banks assets And Tier 1 And 2 Ratio Used On Weighted Assets

(2) Answer :- (A) It Owned Large Quantities Of Mortgage- Backed Securities

A Structured Investment Vehicle (SIV) is a non-banking established to earn a credit From the longer-term assets That Is in its portfolio and the shorter-term liabilities They Publiced. it is Perceived As Safe Because They Owned Large Quantities Of Mortgage-Backed Securities

(3) Answer :- (C) The FDIC

*Explanation :- The Federal Deposit Insurance Corporation (FDIC) Is regulate A State-Chartered Bank, Which Is Not A member Of The Federal Reserve System.

(4) Answer :- (D) Call Report

*Explanation :- The Quarterly Financial Statement that provide regulators with information about a Bank's Balance Sheet And Income Statement is Called A Call Report In US

Rahul Sunny answered 1 year ago

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