Finance Markets Quiz

Prior to 1986, Regulation Q limited the interest rate that depository institutions could pay on deposits and allowed savings institutions to pay a slightly higher rate than banks.

• True

• False

Of all the depository institutions, as a percentage of assets, credit unions rely the most on deposit sources of funds.

• True

• False

The policy employed in the 1980s of not closing economically insolvent savings institutions was called regulatory forbearance.

• True

• False

After deposits, the second largest source of funds at savings institutions is FHLB loans.

• True

• False

Savings institutions must have at least 65% of their assets in mortgage related areas in order to maintain their favorable tax status and obtain FHLB loans.

• True

• False

In a mutual organization, the depositors are owners of the institution.

• True

• False

Traditionally, most credit union members had a common employer, but increasingly the required commonality is a common location of either residence or workplace.

• True

• False

Savings institution deposits and bank deposits are backed by two different insurance funds.

• True

• False

Credit unions are not taxed, as a result well-run credit unions are often able to charge lower loan rates and pay slightly higher deposit rates than banks.

• True

• False

The National Credit Union Administration is the primary regulator of federally chartered credit unions.

• True

• False