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The Basel Committee ruled that regulators in other countries could ____ of a foreign
bank if they feel that it lacks effective oversight.
A) restrict operations
B) ban operations
C) takeover
D) merge operations
Answer: A
Diff: 1 Type: MC Page Ref: 225
Skill: Recall
Objective List: 10.2 Characterize the 1980s Canadian banking crisis
The Inspector General of Banks was the predecessor of the ____.
A) Office of the Superintendent of Financial Institutions
B) Office of Regulatory Forbearance
C) Canadian Commercial Regulatory Committee
D) Basel Committee
Answer: A
Diff: 1 Type: MC Page Ref: 225
Skill: Recall
Objective List: 10.2 Characterize the 1980s Canadian banking crisis
Sometimes regulators refrain from putting insolvent banks out of business. This is also known
as ____.
A) a decrease in deposit insurance
B) a decrease in interest rates to fight the inflation problem
C) regulatory forbearance
D) increased regulation that prohibited banks from making risky loans
Answer: C
Diff: 1 Type: MC Page Ref: 226
Skill: Applied
Objective List: 10.2 Characterize the 1980s Canadian banking crisis
Bank failures in Canada arose due to historical accident, including ____ and ____.
A) sharp increase in interest rates; severe recession
B) sharp increase in interest rates; a housing boom
C) sharp decrease in interest rates; severe recession
D) sharp decrease in interest rates; a housing bubble
Answer: A
Diff: 1 Type: MC Page Ref: 226
Skill: Recall
Objective List: 10.2 Characterize the 1980s Canadian banking crisis