NHTM - CHAPTER 2

Federal Reserve Act authorized the creation of the Federal Deposit Insurance Corporation.

• FALSE

• TRUE

In the United States, fixed fees charged for deposit insurance, regardless of how risky a bank is, led to a problem known as moral hazard.

• TRUE

• FALSE

Government-sponsored deposit insurance typically encourages individual depositors to monitor their banks' behavior in accepting risk.

• FALSE

• TRUE

The Federal Reserve changes reserve requirements frequently because the affect of these changes is so small.

• TRUE

• FALSE

The Bank Merger Act and its amendments requires that Bank Holding Companies be under the jurisdiction of the Federal Reserve.

• TRUE

• FALSE

National banks cannot merge without the prior approval of the Comptroller of the Currency.

• TRUE

• FALSE

The Truth in Lending (or Consumer Credit Protection) Act was passed by the U.S.  Congress to outlaw discrimination in providing bank services to the public.

• TRUE

• FALSE

The federal law that states individuals and families cannot be denied a loan merely because of their age, sex, race, national origin or religious affiliation is known as the Competitive Equality in Banking Act.

• TRUE

• FALSE

Under the terms of the 1994 Riegle-Neal Interstate Banking law bank holding companies can acquire a bank anywhere inside the United States, subject to Federal Reserve Board approval.

• FALSE

• TRUE

The 1994 federal interstate banking bill does not limit the percentage of statewide or nationwide deposits that an interstate banking firm is allowed to control.

• FALSE

• TRUE