Question

11.

The Depository Institutions Deregulation and Monetary Act contained the following provisions except

Select one:

a. expanding the S&Ls lending power to offer loans to businesses and offer more services.

b. the phase out of Regulation Q.

c. uniform reserve requirements.

d. allowing financial holding companies to link commercial banks with securities and insurance companies.

Clear my choice

12.

The following are depository institutions except

Select one:

a. commercial institutions.

b. thrift institutions.

c. commercial banks.

d. savings banks.

13.

____ are tax-exempt institutions set up to provide participants with retirement income that will supplement other sources of income benefits.

Select one:

a. Life insurance companies

b. Pension funds

c. Credit Unions

d. Mutual funds

14.

An agency of a foreign bank in the U.S.

Select one:

a. can operate only in some designated areas.

b. has limited ability to raise funds in the U.S.

c. is allowed to fully participate in all banking activities similar to a local bank branch.

d. can accept deposits and borrow in the wholesale and money markets.

15.

The law that separated commercial banking with investment banking is called the

Select one:

a. Garn-St. Germain Act.

b. Glass-Steagall Act.

c. Interstate Banking and Branching Efficiency Act.

d. Financial Institutions Recovery, Reform, and Enforcement Act.

====

Please answer ALL correctly!

I Will Thumb Up!

Thank you!

Answer 1

11. a. expanding the S&Ls lending power to offer loans to businesses and offer more services.

12. a. commercial institutions
A depository institution is a financial insitution in the United States such as savings banks, commercial banks, credit unions that legally accepts monetary deposits from the customers. Thrift institutions are a type of savings banks institutions.

13. b. Pension funds
Pension funds are monetary contributions set up by employers or other organizations to provide their employees' retirement benefits. Pension funds are exempt from capital gains tax and the earnings on its investments is either tax exempt or tax deferred.

14. d. can accept deposits and borrow in the wholesale and money markets
An agency of a foreign bank in US can operate in a bit restrictive manner that the agency can raise funds only in the wholesale and the money markets.

15. b. Glass-Steagall Act.
The Glass-Steagall Act effectively separated commercial banking from investment banking and created the Federal Deposit Insurance Corporation.