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Question
The uniform guidelines issued by bank regulators for trading in futures and forwards
A. require a bank to establish trading limits.
B. require a bank to disclose large contract positions.
C. require a bank to establish internal guidelines regarding hedging activities.
D. All of the above are correct.
E. Answers A and C only.
Answer
This answer is hidden. It contains 1 characters.
Related questions
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The Insurance Regulatory Information System (IRIS) is a standardized examination system used to measure the profitability of insurance companies.
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Property-casualty insurers tend to have a higher level of liquidity risk than life insurers.
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The largest property-casualty (PC) insurance companies have become less influential over the past decade.
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In the case of an insurance company failure, policyholders immediately receive a payout of the cash surrender value of their policies.
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Loss exposures faced by insurers in accident and health lines are more similar to those faced by traditional life insurance than by property-casualty insurance.
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The two policy categories offered by property-casualty insurers that are most likely to be subject to rate regulation are
A. auto insurance and worker's compensation.
B. homeowner multiple peril and commercial multiple peril.
C. earthquake and flood.
D. surety bonds and financial guaranty.
E. product liability and farm owner multiple peril.
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The McCarran-Ferguson Act of 1945
A. separated commercial banking from insurance activities.
B. mandated federal insurance company charters.
C. stipulated that insurance companies are to be regulated at the state level.
D. initiated a national insurance guaranty fund.
E. limited insurance company assets to low risk government securities.
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The surrender value of an insurance policy is
A. the expected payment commitment on existing policy contracts.
B. a fund established and held separately from the company's other assets.
C. the cash value paid to the policyholder if the policy is terminated before it matures.
D. the same as the endowment payout.
E. the price at which the company may repurchase the policy.
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A. is used to build up a fund.
B. pays only fixed returns to groups of employees.
C. is used to liquidate a fund.
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E. None of the above are correct.
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B. universal life.
C. whole life.
D. endowment life.
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A. term life.
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C. whole life.
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Which of the following is NOT considered a trading activity of securities firms?
A. Position trading.
B. Pure arbitrage.
C. Liquidity trading.
D. Risk arbitrage trading.
E. Program trading.
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A corporate venture capital firm
A. has publicly-traded common stock.
B. provides equity funds to companies that already have publicly traded common stock.
C. is a subsidiary of a nonfinancial corporation.
D. provides debt funding to only to established corporations.
E. is subject to more stringent disclosure requirements than other venture capital firms.
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Which of the following would be a key area of activity for an investment bank specializing in the commercial side of the business?
A. Purchase of existing securities.
B. Sale of securities in the secondary market.
C. Brokerage of existing securities.
D. Underwriting issues of new securities.
E. All of the above.
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Market making involves creating a primary market in a financial asset.
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The Financial Services Modernization Act of 1999 and other regulatory changes have been the cause of the increase in interindustry mergers of investment banks and securities firms.
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As of March 2012, the payday loan industry was regulated at the federal level.
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It is impossible for an individual to be approved for a finance company loan with a bankruptcy on their record.
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Finance companies are subject to regulations that restrict the types of products and services they can offer to small business customers.