Question

-5. If a bank establishes a "financial holding company" it can use that company to buy an insurance company, but, under rules established by the Federal Reserve, that insurance company can only sell new policies to depositors of the bank. 6. To reduce risk-taking, US bank regulators (e) require banks to hold substantial capital (b) subject banks to annual financial examinations (c) prohibit banks from investing in corporate stock (d) all of the above 7. To ensure that all banks are operating with "safety and soundness," the bank regulatory authorities require all banks to (a) obtain deposit insurance from the FDIC (b) hold an amount of capital equal to no less than their required reserves (c) subject themselves to annual financial examinations (d) all of the above

Answer 1