16.
A run on the bank refers to
Select one:
a. the banking failure resulting from borrowers running away
from their loans.
b. depositors who are not depositing money in the bank but
rather investing them in other areas.
c. deposits that are not earning competitive interest
rates.
d. depositors who are withdrawing deposits out of fear of a
bank s failure and loss of deposits.
17.
A corporation that owns several firms and at least one of them
is a bank and the rest are engaged in activities closely related to
banking is called a ____.
Select one:
a. state bank
b. bank holding company
c. financial holding company
d. national bank
18.
Thrifts institutions would include the following except
Select one:
a. savings and loans.
b. savings banks.
c. commercial banks.
d. credit unions.
19.
In order to reduce moral hazard in financial
institutions
Select one:
a. deposit insurance premiums became based on a risk-based
capital standard.
b. None of the above
c. the Fed required banks to maintain low level of risk
assets.
d. the FDIC was required to resolve any insolvency by using
the purchase and assumption method.
20.
Dual banking refers to
Select one:
a. the separation between banking and insurance.
b. the separation between commercial banking and investment
banking.
c. state and national banks.
d. the separation between borrowing and investing.
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