Multiple choice

1. regulatory balance sheet restrictions are designed to:

a. encourage high risk-taking by proper diversification

b. limit proper diversification

c. limit risk-taking and encourage diversification

d. limit the size of depository institutions

2. The purpose of a bank examination is to

a. verify the bank's financial statements according to general accepted accounting principles

b. maintain proper control of the bank by the FDIC

c. promote and safety, soundness and compliance with regulations

d. make sure the bank is not ageing any risk

3. The regulatory agency most directly concerned with supervising thrifts is the

a. FHLBB

b. BOTS

c. COCC

d. Fed

4. The major assets of savings and loans are

a. mortgage-backed securities

b. construction loans

c. residential mortgages

d. cash and investment accounts