Multiple Choice

1.Which of the following is not one of the risks and social factors being addressed by
regulatory measures set by World Bank
A)systematic risk B)consumer protection
C) efficiency enhancement D)social objectives

2.Is the probability of a firm to fail its objective that will result to ripple effect.
A)systemic risk B)consumer protection
C) efficiency enhancement D)social objectives

3. Is a factor to consider that policies enforced assumes the effect to the consumer’s
welfare.
A)systemic risk B)consumer protection
C) efficiency enhancement D)social objectives

4. Is a factor that is considered to ensure the dynamism and agility of the policy to
adopt in a fast changing environment
A)systemic risk B)consumer protection
C) efficiency enhancement D)social objectives

5. Is a factor that is taking into consideration the alignment into objectives of the
society.
A)systemic risk B)consumer protection
C) efficiency enhancement D)social objectives

6. Which of the following is not addressed by Antithrust/competition policy?

A)systemic risk B)consumer protection
C) efficiency enhancement D)social objectives

7. Which of the following is addressed by Geographic Restrictions?

A)systemic risk B)consumer protection
C) efficiency enhancement D)social objectives

8.If the FDIC decides that a bank is too big to fail, it will use the ____ method,
effectively ensuring that ____ depositors will suffer losses.
A) payoff; large
payoff; no
C) purchase and assumption; large
D) purchase and assumption; no

9.The chartering process is especially designed to deal with the ____ problem, and
regular bank examinations help to reduce the ____ problem.
A) adverse selection; adverse selection
adverse selection; moral hazard
C) moral hazard; adverse selection
D) moral hazard; moral hazard
10.The result of the too-big-to-fail policy is that ____ banks will take on ____ risks,
making bank failures more likely.
A) small; fewer
small; greater
C) large; fewer
D) large; greater