Question

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____ is not a characteristics used by the Federal Deposit Insurance Corporation (FDIC) to rate banks.

Question 37 options:

	a. Capital adequacy.
	b. Current stock price.
	c. Asset quality.
	d. Management.
	e. All of the above are used by the FDIC to rate banks.

The moral hazard problem is minimized when deposit insurance premiums are

Question 38 options:

	a. zero (not imposed by the FDIC).
	b. the same percentage of assets for all banks.
	c. set at a fixed percentage of assets for large banks, and is zero for small banks.
	d. set at a percentage of assets that is based on the bank's risk level.

The uniform global capital requirements mandated a minimum of Tier 1 capital, which primarily consists of funds obtained from

Question 39 options:

	a. issuing commercial paper and bonds.
	b. retaining earnings and issuing commercial paper.
	c. retaining earnings and issuing common stock.
	d. issuing bonds and common stock.

Answer 1

Answer 37:
Option b is correct.
Current stock price is not a characteristics used by the Federal Deposit Insurance Corporation (FDIC) to rate banks.

Answer 38:
Option d is correct
Set at a percentage of assets that is based on the bank's risk level.

Answer 39:
Option c is correct.
Retaining earnings and issuing common stock.