Fed's Yellen: Dodd-Frank Helps Keep System Safer

The transcript discusses the importance of implementing safeguards through supervision and regulation to ensure a safer financial system. It highlights the reforms introduced by the Dodd Frank Act, such as increased capital and liquidity requirements, and the central clearing of derivatives. The focus is on resolution processes and financial stability, with an emphasis on preventing another financial crisis. Concerns are raised about the potential negative impact of repealing these reforms.

What is the primary goal of implementing safeguards through supervision and regulation in the financial system?

• To promote international trade

• To increase the profitability of financial institutions

• To reduce government intervention in financial markets

• To ensure a safer and sounder financial system

Which of the following is a reform introduced by Dodd-Frank to enhance financial stability?

• Introducing higher capital and liquidity requirements

• Eliminating liquidity requirements

• Reducing capital requirements

• Deregulating derivatives

What is the purpose of the living wills process mentioned in the Dodd-Frank reforms?

• To reduce competition in the financial sector

• To increase the size of financial firms

• To promote mergers and acquisitions

• To end the 'too big to fail' problem

What role does the EFF sock group play in the financial system?

• It regulates international trade agreements

• It manages government budgets

• It monitors threats to financial stability

• It sets interest rates for banks

Why is it important to maintain the reforms introduced by Dodd-Frank?

• To increase the complexity of financial regulations

• To reduce the number of financial institutions

• To diminish the odds of another financial crisis

• To promote financial instability