Chapter 10 T/F Flashcards
Businesses dislike regulation
False. Businesses can benefit from regulation.
Regulation creates opportunity for innovation.
True
Public confidence is the only reason to regulate the financial services industry
False. Other reasons include managing economic growth and establishing business practices.
Financial services regulation can influence monetary policy.
True
The Great Depression created the need for greater government regulation.
False. The need for regulation came before the Depression. The Depression offered the opportunity to regulate.
Open access to markets is a goal of regulation.
True
Legislative acts are seldom amended
False. Legislative acts are frequently amended.
McCarran-Ferguson made insurance a federally regulated industry.
False. McCarran-Ferguson established insurance as largely the states’ regulatory responsebility
The SEC was established by the Investment Company Act of 1940.
False. The SEC was established by the Securities Exchange Act of 1934.
Gramm-Leach-Bliley is important for repealing the Glass-Steagall Act.
True
FDIC insured deposits have the full faith and credit backing of the United States government.
True
National Credit Unions Share Insurance Fund made certain that deposits have the full faith and credit backing of the United States government.
True
The OCC regulates national banks.
True
The Public Company Accounting Oversight Board was created by the Sarbanes-Oxley Act.
True
Most regulators provide synopses of their acts as well as links to the acts in the U.S. Code on their websites
True
