1) The ________ that required separation of commercial and investment banking was repealed in 1999.
A) the Federal Reserve Act.
B) the Glass Steagall Act.
C) the Bank Holding Company Act.
D) the Monetary Control Act.
2) Which of the following is not a reason financial regulation and supervision is difficult in real life?
A) Financial institutions have strong incentives to avoid existing regulations.
B) Unintended consequences may happen if details in the regulations are not precise.
C) Regulated firms lobby politicians to lean on regulators to ease the rules.
D) Financial institutions are not required to follow the rules.
3) Who has regulatory responsibility when a bank operates branches in many countries?
A) It is not always clear.
B) The WTO.
C) The U.S. Federal Reserve System.
D) The first country to submit an application.