Which of the following is false concerning a systematically important financial institution (SIF) ?
A) In the U.S. under the Dodd-Frank Act, the Financial Stability Oversight Council (FSOC) was established and is required to supervise and regulate non-bank SIFs.
B) SIFs do not include insurance companies, investment banks, or finance companies.
C) A systematically important financial institution can be a bank, insurance company or other financial institution whose failure could trigger a financial crisis.
D) SIFs may have systemic risk because of their size, interconnectedness, leverage, liquidity, risk and maturity mismatch, as well as lack of a substitute or lack of existing regulation.
E) SIFs are supervised more closely and may be potentially required to have higher safety margins, such as higher levels of capital to assets ratios and be subject to future limitations on their activities.
Correct Answer:
Verified
Q9: Discuss reasons for the development of financial
Q10: Discuss venture capital firms and how returns
Q11: Give a brief overview of credit card
Q12: Discuss government-sponsored enterprises in the U.S. as
Q13: Factors affecting the growth of larger and
Q15: Evaluation criteria for SIFs by U.S. FSOC
Q16: Which of the following is false about
Q17: Which of the following is false about
Q18: Differences for finance companies and commercial banks
Q19: Finance company types include which of the
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents