Question

Question 1 10 pts When a bank seeks to expand (new branch, merge with another bank etc.) the following needs to be done before proceeding: obtain regulatory approval decide how many investors to seek seek a permit from the local city government decide who will be the CEO at the new branch Question 2 10 pts One of the reasons for bank regulation is to ensure equal opportunity and fairness in the public's access to credit and other financial services. True False

Answer 1

1)  ANSWER

Obtain regulatory approval

When a bank seeks to expand, it requires to obtain regulatory approval. Bank has to earn approval from state and federal banking regulators.

2) ANSWER

True

To ensure equal opportunity and fairness in the public's acess to credit and other financial services is one of the reasons for bank regulation.

3) ANSWER

OCC

A new national bank obtains charter from OCC. OCC stands for Office of the Comptroller of the Currency. OCC has authority to issue a federal or "national bank" charter, while any state may issue a state charter.

4) ANSWER

True

This statement is true. Creating the FDIC that guaranties public deposits up to a certain amount was one of the most important legacies of the Glass Stegall Act.

5) ANSWER

False

The statement is false. Because this act allows the FDIC to borrow directly from the Treasury department and mandated that the FDIC resolve failed banks using the least costly method available. It also ordered the FDIC to assess insurance premiums according to risk and create new capital requirements.

6) ANSWER

CRA

CRA stands for Community Reinvestment Act which prohibits U.S. banks from discriminating against customers residing within their trade territories.