19 Bank regulations a Are not necessary because the financia

19) Bank regulations

a) Are not necessary because the financial sector works more efficiently without government

supervision.

b) Are designed partly to ensure the safety of depositors.

c) Are designed partly to minimize run on banks.

d) Are designed mainly to control the money supply.

e) b and c.

f) b,c,d.

20) Which of the following is true?

a) FDIC is an agent of the federal government.

b) The federal government cannot limit the type of assets in which banks can invest in.

c) Deposit insurance limits the money supply.

d) a and b.

e) all of the above.

f) None of the above.

Solution

a) \"E\"

The banks\' regulations are designed to protect the depositor interest and prevent the bank run. MOney supply is managed by the FED.

b) \"F\"

None of the given options are correct.