If a Financial Institution Is Systemically Important

question 48

Multiple Choice

If a financial institution is systemically important:

• A) it is an important part of the Federal Reserve banking system.
• B) the business cycle affects it more than it affects the average financial institution.
• C) its activities have the potential to cause a banking crisis.
• D) it is not allowed to engage in maturity transformation.
• Answer Key

---

Definitions:

Dental Insurance

A type of health insurance designed to cover a portion of the costs associated with dental care, including routine check-ups, cleanings, x-rays, and other treatments.

Unemployment Compensation

Financial payments made to individuals who have lost their job without fault on their own part, intended to provide temporary financial support.

Implied Employment Contract

An implied employment contract suggests terms of employment based on actions, conduct, or situational circumstances, rather than a written or verbal agreement.

Whistleblower Protection Act

Legislation intended to shield individuals who report illegal or unethical activities within their organization from retaliation.