Questions from Financial Markets


Q: How did the Financial Reform Act of 2010 change the reserve requirements

How did the Financial Reform Act of 2010 change the reserve requirements of the FDIC’s Deposit Insurance Fund?

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Q: How did Basel III change capital and liquidity requirements for banks?

How did Basel III change capital and liquidity requirements for banks?

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Q: Lehman Brothers continued to report positive earnings throughout the spring of 2008

Lehman Brothers continued to report positive earnings throughout the spring of 2008, even though mortgage valuations were clearly declining. Nevertheless, some institutional investors were concerned t...

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Q: Explain the government’s dilemma regarding whether it should rescue American International Group

Explain the government’s dilemma regarding whether it should rescue American International Group (AIG) during the credit crisis.

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Q: Describe the U.S. government’s efforts to infuse capital in

Describe the U.S. government’s efforts to infuse capital in all of the very large banks during the credit crisis.

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Q: Briefly describe the Glass-Steagall Act, and then explain how

Briefly describe the Glass-Steagall Act, and then explain how the related regulations have changed since it was enacted.

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Q: Explain how the uniform capital requirements can discourage banks from taking excessive

Explain how the uniform capital requirements can discourage banks from taking excessive risk.

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Q: Explain how the value at risk (VaR) method can be

Explain how the value at risk (VaR) method can be used to determine whether a bank has adequate capital.

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Q: What is a bank’s gap, and what does it attempt to

What is a bank’s gap, and what does it attempt to determine? Interpret a negative gap. What are some limitations of measuring a bank’s gap?

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Q: As economic conditions change, how do banks adjust their asset portfolio

As economic conditions change, how do banks adjust their asset portfolio?

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