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Regulation of Financial Institutions Chapter Exam

Exam Instructions:

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

Page 1

Question 1 1. The Federal Trade Commission is made up of several different bureaus. Which bureau handles credit protection?

Question 2 2. Margie's credit card bill is due on the 30th of each month. She sent her payment on the 25th, but the company posted the payment on the 5th of the following month and charged her a late fee. This is likely a violation of the:

Question 3 3. Sally received a copy of her credit report and noticed an error. The report lists a credit card she has never owned. She wants to dispute this error. What law contains information about how to do this?

Question 4 4. Measures that are taken to prevent someone or something from an undesirable outcome are called _____.

Question 5 5. How many goals are there for having effective safeguards in place in the banking industry?

Page 2

Question 6 6. Rachel works as a teller at the bank. Normally she reports all the transactions that have been made to the accountant at the end of the day. On this particular day, Rachel decided to just enter all the information herself rather than give them to the accountant to verify and enter, in order to save time so she could go home earlier. In doing this, has Rachel violated one of the five goals of safeguards?

Question 7 7. How did increased regulation impact the mortgage market after 2008?

Question 8 8. Why might a government decide to grant a monopoly in a heavily regulated industry?

Question 9 9. What economic problem occurred in 2008 that led to the passage of the Dodd-Frank Act?

Question 10 10. What is the FDIC?

Page 3

Question 11 11. What did the Glass-Steagall Act accomplish?

Question 12 12. What is an important effect of the EBRA?

Question 13 13. How can the government use fiscal policy to stimulate the economy in a financial crisis?

Question 14 14. How much money will the FDIC insure for each account in case a bank fails?

Question 15 15. Why does the Fed have an important role in managing the economy?

Page 4

Question 16 16. Overregulation is usually a result of the government wishing to promote _____.

Question 17 17. In general, which of the following is NOT correct concerning how politics and regulation intersect?

Question 18 18. The government's restriction and control over business practices is called _____.

Question 19 19. What was one of the first moves to deregulate the banking industry?

Question 20 20. What happened to the Glass-Steagall Act?

Page 5

Question 21 21. Which of the following events played a part in the thrift banks failing?

Question 22 22. If your bank fails to tell you that your savings account will be charged a $25.00 fee unless you keep at least $500 in the account, it has violated which regulation?

Question 23 23. Financial institutions who refuse to process home mortgage applications for Chinese applicants are violating which regulation?

Question 24 24. Financial institutions are not allowed to give your financial information to the government without telling you first UNLESS:

Question 25 25. What is a consumer's credit score?

Page 6

Question 26 26. What are rules and regulations that are put into place to guard assets owned by a person or a company?

Question 27 27. What theory seeks to explain that individuals who act in their own self-interest might deplete a common resource important to a whole group of people?

Question 28 28. The EBRA aimed to address what problem?

Question 29 29. Which of the following policies was NOT part of the Dodd-Frank Wall Street Reform and Consumer Protection Act?

Question 30 30. Which of the following is an example of an equity goal?

Regulation of Financial Institutions Chapter Exam Instructions

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

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