295 $
© 2014 Pearson Canada Inc.$10.6 Web Appendix 1: Banking Crises Throughout the World
The Depository Institutions Deregulation and Monetary Control Act of 1980 ____.
A) separated investment banks and commercial banks
B) restricted the use of ATS accounts
C) imposed restrictive usury ceilings on large agricultural loans
D) increased deposit insurance from $40,000 to $100,000
Answer: D
Diff: 1 Type: MC Page Ref: 10.1A- 2
Topic: Questions for Web Appendix on the Banking Crises Throughout the World
Skill: Recall
Objective List: Appendix: Banking Crises Throughout the World
One of the problems experienced by the savings and loan industry during the 1980s was
____.
A) managers lack of expertise to manage risk in new lines of business
B) heavy regulations in the new areas open to S&Ls
C) slow growth in lending
D) close monitoring by the FSLIC
Answer: A
Diff: 1 Type: MC Page Ref: 10.1A- 2
Topic: Questions for Web Appendix on the Banking Crises Throughout the World
Skill: Recall
Objective List: Appendix: Banking Crises Throughout the World
The S&L Crisis can be analyzed as a principal-agent problem. The agents in this case, the
____, did not have the same incentive to minimize cost to the economy as the principals, the
____.
A) politicians/regulators; taxpayers
B) taxpayers; politician/regulators
C) taxpayers; bank managers
D) bank managers; politicians/regulators
Answer: A
Diff: 1 Type: MC Page Ref: 10.1A- 2
Topic: Questions for Web Appendix on the Banking Crises Throughout the World
Skill: Applied
Objective List: Appendix: Banking Crises Throughout the World