1) Banks will be examined at least once a year and given a CAMELS rating by examiners. The L stands for ________.
A) liabilities
B) liquidity
C) loans
D) leverage
2) The federal agencies that examine banks include
A) the Federal Reserve System.
B) the Internal Revenue Service.
C) the SEC.
D) the U.S. Treasury.
3) Banks are required to file ________ usually quarterly that list information on the bank”s assets and liabilities, income and dividends, and so forth.
A) call reports
B) balance reports
C) regulatory sheets
D) examiner updates
4) Regular bank examinations and restrictions on asset holdings help to indirectly reduce the ________ problem because, given fewer opportunities to take on risk, risk prone entrepreneurs will be discouraged from entering the banking industry.
A) moral hazard
B) adverse selection
C) ex post shirking
D) post contractual opportunism