FINA 465 EXAM 1 QUESTIONS AND
ANSWERS 100% PASS 2026/2027
The _________ created the Office of Thrift Supervision. - ANS Financial Institutions Reform,
Recovery and Enforcement Act
Many insurance companies have organized as a _____________ in order to own a depository
institution and bypass prohibitions in the Glass-Steagall Act and the Bank Holding Company Act.
- ANS unitary thrift holding company
FASB 115 requires historical costs to be used for: - ANS held-to-maturity securities.
_________ allowed any institution to "truncate" the paper check at any point in the check
clearing process. - ANS Check 21 Act
Which of the following is an overnight collateralized loan facility that provides loans for up to
120 days to primary dealers in exchange for a broad range of collateral? - ANS Primary Dealer
Credit Facility
Which of the following is the receiver of a failed depository institution? - ANS Federal Deposit
Insurance Corporation
Which of the following institutions' customers have a "common bond"? - ANS credit union
@2026 ALLRIGHTS RESERVED 1
,Which types of financial institutions appear best situated to gain from potential changes in the
regulatory structure within the financial services arena? - ANS All of these except "those with
small amounts of capital"
Which of the following allows depository institutions to borrow for a fixed term against a variety
of collateral that is normally accepted for discount window loans? - ANS Term Auction Facility
Which of the following was a goal of the Depository Institutions Deregulation and Monetary
Control Act of 1980? - ANS To allow banks to pay market rates on deposits.
Which of the following is NOT true regarding the Gramm-Leach-Bliley Act? - ANS GLB
restricted banks from offering services and narrowed the lines of business available to them
Which of the following is NOT an objective of depository institution regulation? - ANS All of
these are objectives of depository institution regulation
Which of the following is not one of the Fed's monetary policy tools? - ANS Changes in the
fed funds rate
The lack of incentive to guard against risk where one is protected from it is known as: -
ANS moral hazard
Which of the following is not represented in the CAMELS ratings. - ANS Cash adequacy
The Consumer Financial Protection Bureau was created as part of the: - ANS Dodd-Frank Act
@2026 ALLRIGHTS RESERVED 2
, The _________ authorized money market deposit accounts. - ANS Depository Institutions Act
(Garn-St. Germain)
Savings and loans have historically specialized in: - ANS real estate loans.
Savings institutions must maintain what percent of their assets in housing-related assets to be
considered a "Qualified Thrift Lender"? - ANS 65%
The Federal Deposit Insurance Reform Act of 2005 created which of the following? -
ANS Deposit Insurance Fund
Which of the following is not part of the acronym CAMELS? - ANS Loan Quality
Which of the following is not a component of the Farm Credit System? - ANS Agricultural
Lending Office
The primary federal regulator of state banks that are not members of the Fed is the: -
ANS FDIC.
The _________ requires disclosure of a bank's privacy policy. - ANS Gramm-Leach-Bliley Act
Federal Reserve Reg. ____ makes it illegal for any lender to discriminate on the basis of national
origin. - ANS B
The primary federal regulator of state banks that are members of the Fed is the: -
ANS Federal Reserve
@2026 ALLRIGHTS RESERVED 3
ANSWERS 100% PASS 2026/2027
The _________ created the Office of Thrift Supervision. - ANS Financial Institutions Reform,
Recovery and Enforcement Act
Many insurance companies have organized as a _____________ in order to own a depository
institution and bypass prohibitions in the Glass-Steagall Act and the Bank Holding Company Act.
- ANS unitary thrift holding company
FASB 115 requires historical costs to be used for: - ANS held-to-maturity securities.
_________ allowed any institution to "truncate" the paper check at any point in the check
clearing process. - ANS Check 21 Act
Which of the following is an overnight collateralized loan facility that provides loans for up to
120 days to primary dealers in exchange for a broad range of collateral? - ANS Primary Dealer
Credit Facility
Which of the following is the receiver of a failed depository institution? - ANS Federal Deposit
Insurance Corporation
Which of the following institutions' customers have a "common bond"? - ANS credit union
@2026 ALLRIGHTS RESERVED 1
,Which types of financial institutions appear best situated to gain from potential changes in the
regulatory structure within the financial services arena? - ANS All of these except "those with
small amounts of capital"
Which of the following allows depository institutions to borrow for a fixed term against a variety
of collateral that is normally accepted for discount window loans? - ANS Term Auction Facility
Which of the following was a goal of the Depository Institutions Deregulation and Monetary
Control Act of 1980? - ANS To allow banks to pay market rates on deposits.
Which of the following is NOT true regarding the Gramm-Leach-Bliley Act? - ANS GLB
restricted banks from offering services and narrowed the lines of business available to them
Which of the following is NOT an objective of depository institution regulation? - ANS All of
these are objectives of depository institution regulation
Which of the following is not one of the Fed's monetary policy tools? - ANS Changes in the
fed funds rate
The lack of incentive to guard against risk where one is protected from it is known as: -
ANS moral hazard
Which of the following is not represented in the CAMELS ratings. - ANS Cash adequacy
The Consumer Financial Protection Bureau was created as part of the: - ANS Dodd-Frank Act
@2026 ALLRIGHTS RESERVED 2
, The _________ authorized money market deposit accounts. - ANS Depository Institutions Act
(Garn-St. Germain)
Savings and loans have historically specialized in: - ANS real estate loans.
Savings institutions must maintain what percent of their assets in housing-related assets to be
considered a "Qualified Thrift Lender"? - ANS 65%
The Federal Deposit Insurance Reform Act of 2005 created which of the following? -
ANS Deposit Insurance Fund
Which of the following is not part of the acronym CAMELS? - ANS Loan Quality
Which of the following is not a component of the Farm Credit System? - ANS Agricultural
Lending Office
The primary federal regulator of state banks that are not members of the Fed is the: -
ANS FDIC.
The _________ requires disclosure of a bank's privacy policy. - ANS Gramm-Leach-Bliley Act
Federal Reserve Reg. ____ makes it illegal for any lender to discriminate on the basis of national
origin. - ANS B
The primary federal regulator of state banks that are members of the Fed is the: -
ANS Federal Reserve
@2026 ALLRIGHTS RESERVED 3
