Which of the Following Is the Legislation That Required Bank

question 11

Multiple Choice

Which of the following is the legislation that required bank regulators to incorporate credit concentration risk into their evaluation of bank insolvency risk.

• A)The Bank Holding Company Act (1956).
• B)FDIC Improvement Act (1991).
• C)Depository Institutions Deregulation and Monetary Control Act (1980).
• D)Garn-St.Germain Depository Institutions Act (1982).
• E)Financial Institutions Reform Recovery and Enforcement Act (1989).

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Definitions:

Equivalent

A term expressing a state of equality or equivalency in value, function, or meaning.

Cash Held

Physical money held by a business in its cash registers or cash box, used for daily operations.

Present Value

The present-day valuation of coming monetary sums or cash flow sequences, upon applying a defined rate of return.

Compounded Annually

The process wherein the interest earned on an investment is added to the principal each year, and in the subsequent year, interest is earned on this new principal.