Define
Gramm-Leach-Bliley Act
financial disintermediation
McFadden Act
Pension Benefit Guaranty Corporation

Why and how did New Zealand change its central bank in the 1980’s?

Evaluate the following statement:
The structure of the European Central Bank reflects a concern about inflation.

Explain how lenders use collateral as part of loan agreements to cope with the problem of asymmetric information.

Explain how lenders use covenants as part of loan agreements to cope with the problem of moral hazard.

Explain how lenders use covenants as part of loan agreements to cope with the problem of moral hazard.

Evaluate the following statement:
Exposure to interest rate risk had little to do with the crisis in the savings and loan industry in the early 1980's.

Evaluate the following statement:
If the Fed acts to reduce increases in inflationary pressures the exposure of community banks to interest rate risk may be a significant problem.

Evaluate the following statement.
Sarbanes Oxley is a fundamental change in the approach to the regulation of financial markets in the United States.

Evaluate the following statement.The guiding idea behind the regulation of financial markets in the United States is to protect individual investors from themselves.

What is securitization? Why is it important to banks?

Why did the end of regulation Q increase the desire of banks to make floating rate loans rather than fixed-rate loans?

Evaluate the following statement:The development of Basel IA is important to smaller banks given the comparative advantage Basel II may give larger banks.

Sheila C. Bair, Chairman, Federal Deposit Insurance Corporation stated "the FDIC will evaluate each institution's risk based on three primary sources of information". The third source of information is "long-term debt issuer ratings for large institutions that have them." Explain how market discipline enhances traditional supervision of banks by regulators?