Chapter 4 (2)

Question 1

Volker rule(dodd frank act)

Answer 1

Deposit taking banks will be banned from proprietary trading and from owning more than a small fraction of hedge funds and private equity firms

Question 2

Resolution authority (dodd frank act)

Answer 2

The government can seize and dismantle a large bank in an orderly manner if the bank faces impending failure and poses a systematic risk to the broader financial system

Question 3

resolution authority (dodd frank act)

Answer 3

The government can seize and dismantle a large bank in an orderly manner if the bank faces impending failure and poses a systematic risk to the broader financial system

Question 4

Derivative securities (dodd frank act)

Answer 4

Derivatives trading in over the counter markets will be transferred to electronic exchanges with contracts settled through central clearing houses, to increase transparency and reduce counter party risk

Question 5

systematic risk regulation (dodd frank act)

Answer 5

A financial stability oversight council of government regulators, charied by the treasury secretary will identify systemically important financial firms and monitor their activites and financial conditions. These firms must draw up a living will to describe how they would be liquidated if they fail

Question 6

Consumer protection (dodd frank act)

Answer 6

A new independent consumer financial protection bureau will monitor predaroty mortgage loans and other loan products