U.S. Financial System Quiz

What is the primary purpose of the U.S. financial system?

• To regulate international financial transactions

• To provide available funds of savers and investors for borrowers and others seeking to raise funds

• To ensure only risk-free investments

• To manage personal financial accounts

Which of the following is NOT a category of financial regulators?

• Depository regulators

• Consumer protection regulators

• Private investment regulators

• Securities markets regulators

What significant act did Congress pass in response to the 2007-2009 financial crisis?

• Sarbanes-Oxley Act

• Dodd-Frank Wall Street Reform and Consumer Protection Act

• Federal Reserve Act

• Gramm-Leach-Bliley Act

What is a major drawback of the fragmented regulatory system?

• Too many regulations that overlap and create gaps

• Lack of specialized and knowledgeable regulators

• Potential for jurisdictional overlaps, which may cause regulatory gaps and overlaps

• Excessive focus on international finance

Which regulatory agency is primarily responsible for overseeing national banks, U.S. federal branches of foreign banks, and federally chartered thrift institutions?

• Federal Reserve

• Office of the Comptroller of the Currency (OCC)

• Securities and Exchange Commission (SEC)

• Consumer Financial Protection Bureau (CFPB)

What is the main function of the Federal Deposit Insurance Corporation (FDIC)?

• Operates discount window for banks

• Approves rulemakings by self-regulated organizations

• Provides deposit insurance for federally insured depository institutions

• Oversees securities exchanges and brokers

Which entity acts as a conservator for Fannie Mae and Freddie Mac since September 2008?

• Securities and Exchange Commission (SEC)

• Federal Housing Finance Agency (FHFA)

• Commodity Futures Trading Commission (CFTC)

• Consumer Financial Protection Bureau (CFPB)

Which agency is responsible for regulating futures exchanges, commodity pool operators, and commodity trading advisors?

• National Credit Union Administration (NCUA)

• Federal Reserve

• Commodity Futures Trading Commission (CFTC)

• Office of the Comptroller of the Currency (OCC)

What role does the Consumer Financial Protection Bureau (CFPB) play in consumer protection?

• Provides deposit insurance

• Acts as conservator for Fannie Mae and Freddie Mac

• Rulemaking authority for consumer protection for all banks; supervisory authority for banks with over $10 billion in assets

• Approves rulemakings by self-regulated organizations

What may the bank do with the money in your savings account?

• Use it to create a sculpture in the bank

• Let you take it out whenever you want with your debit card

• Use it to throw a party

• Use it to give out loans to other customers