Which Of The Following Laws Has Had Significant Effects In Maintaining Bank Identity Records? (Correct answer)

How long does the bank have to keep the information in the paragraphs on file?

  • The information specified in paragraphs (a) (3) I (B), (C), and (D) of this section shall be retained by the bank for a period of five years after the date of the record’s creation. Fourteenth, a comparison with official listings.

Which of the following agencies guarantees the safety of all of its members bank accounts?

The Federal Deposit Insurance Corporation (FDIC) was established in 1933 to promote good banking practices in order to maintain public trust and stability in the financial system. As of 2020, the Federal Deposit Insurance Corporation (FDIC) will protect deposits up to $250,000 per depositor, provided that the institution is a member company of the FDIC.

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Which of the following actions can the Federal Deposit Insurance Company take in the event of a failure of one of its insured banks quizlet?

The Federal Deposit Insurance Corporation (FDIC) was established in 1933 to promote good banking practices in order to retain public trust and promote stability in the financial system. The Federal Deposit Insurance Corporation will protect deposits up to $250,000 per depositor as of 2020, provided that the financial institution is a member company of the Federal Deposit Insurance Corporation (FDIC).

Which of the following statements best describes why a decrease in reserve requirements often results in an increase in the money supply?

Financial institutions contribute to the expansion of the money supply by accepting deposits and lending out the monies received. A lowering in reserve requirements frequently leads in a rise in money supply, which of the following assertions BEST illustrates why this is true? A reduction in reserve requirements allows banks to lend out more money as a result of the reduction.

Which of the following is a consequence of the divisibility characteristic of money?

Money’s divisibility has the effect of which of the following things? It is possible to match the value of commodities and money units with pinpoint accuracy.

Which of the following government agencies regulates financial markets?

The Securities and Exchange Commission (SEC) was founded by the Securities Exchange Act of 1934 and is one of the most powerful and comprehensive financial regulatory bodies in the world. The Securities and Exchange Commission (SEC) is responsible for enforcing federal securities laws and regulating a substantial sector of the securities industry, which includes the United States stock exchanges and options markets.

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Which federal agency ensures that all US financial institutions follow banking laws and regulations?

This independent agency was established by Congress to ensure the stability of the nation’s financial system and public confidence in it.

Which of the following is a function performed by an investment bank?

Underwriting new stock offerings, conducting mergers and acquisitions, and acting as a financial counselor are just some of the many functions that investment banks do in the financial and investing industry.

Which of the following financial institutions are considered to be owned by the depositors?

Depending on their ownership structure, savings banks can be owned by its depositors (mutual ownership) or by shareholders (stock ownership).

Which of the following is not part of the M 1 supply quizlet?

Money supply does not include credit card balances or currency held by financial institutions. Large time deposits are not included in either the M1 or the M2 categories. Coins, currencies, and checkable deposits are included in M1, while modest time deposits are excluded.

How would a decrease in the reserve requirement affect the?

In order for the Federal Reserve to lower the reserve ratio, it must reduce the amount of cash that banks are obliged to store in reserves. This allows banks to make more loans to individuals and companies. This has the effect of increasing the money supply of the country and expanding the economy.

What is the effect of change in reserve requirement by the central government?

Changes in the Reserve Requirement Have an Impact on the Money Stock When (reserve requirement) ratios are raised, it limits the amount of deposits that can be sustained by a given level of reserves and, in the absence of other measures, it reduces the money stock and rises the cost of credit for consumers.

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What effect would a reduction in the required reserve rate RRR have on banks?

A lowering in the reserve requirement ratio (RRR) would free up reserves for banks, allowing them to provide more loans. It would also have the additional effect of increasing the money multiplier. Both of these impacts would result in a significant rise in the money supply. A little rise in the reserve requirement ratio (RRR) would compel banks to maintain more money in reserves.

Which of the following best describes the portability characteristic?

Which of the following best reflects the feature of money that allows it to be moved around? It is small and lightweight, making it easy to transport. Money’s divisibility has the effect of which of the following things?

Which of the following best describes the durability characteristic of money quizlet?

Which of the following BEST reflects the feature of money’s long-term usefulness? Units of money do not lose their value if they are not used within a specified time period. A deposit at a member bank is currently covered up to a maximum of $50,000 by the Federal Deposit Insurance Corporation (FDIC).

Which of the following is not part of the M1 supply?

The following items are NOT included in M1: cash held in banks. The government owns the money and checkable deposits that it uses. The Federal Reserve Banks own the money and checkable deposits that are held in their accounts.

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