Financial Institutions

Question 1

Bank Regulations (Nationally chartered and state chartered)

Answer 1

National: Comptroller of Currency, Federal Reserve, Federal Deposit Insurance Committee (FDIC)

State: authority of state, Federal Reserve, FDIC

Question 2

Savings and Loan/Thrifts

Answer 2

Funds used to make mortgage loans!
Regulated by FDIC & Federal Home Bank Board.

Question 3

Insurance Limitations

Answer 3

$250k per depositor (owner), per insured bank (for each ownership category)

Categories are: individual, joint, rev trust, IRAs

IRAs are separate and $250k/acct

Insurable products: checking, savings, MMF, CDs

Question 4

Credit Union

Answer 4

Nonprofit financial organization serving members with common affiliation.

Loans w/ reasonable rates!

Loans: autos, 1st and 2nd mortgage, home equity, personal signature, student, consolidation

Question 5

Insurance Regulation

Answer 5

1) Legislative: passes insurance laws and provides funding for regulation
2) The Courts: interpret insurance laws and resolve disputes
3) Executive: insurance commissioner enforces regulatory laws

Question 6

Trust Company Regulation

Answer 6

Regualted by state law!