Bank Risk Taking Can Be Controlled by Increasing

question 89

Multiple Choice

Bank risk taking can be controlled by increasing

• A)stockholder discipline by charging stockholders a surcharge.
• B)stockholder discipline by setting risk-adjusted deposit insurance premiums.
• C)depositor discipline by increasing the ceiling for deposit insurance coverage.
• D)regulatory discipline by increasing the budgets of the regulatory agencies.
• E)depositor discipline by expanding the doctrine of "too big to fail."

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Definitions:

Hawaii Annexation

The process by which Hawaii became a part of the United States in 1898, marking the expansion of U.S. territory in the Pacific.

Congress

The legislative body of the United States government, consisting of two houses: the Senate and the House of Representatives, responsible for creating laws.

Desegregated Regiments

Military units in which members of different races are integrated, as opposed to segregated units which were racially divided.

Platt Amendment

An amendment to a U.S. Army appropriations bill in 1901, establishing the terms under which the United States would end its military occupation of Cuba and "guarantee" Cuban independence.