Question 1 3.125 out of 3.125 points
Federal authorities have agreed that ________ was a major contributing factor to the savings and loan implosion.
Selected Answer:
fraud and insider abuse
Answers: careless investment practices
the downturn in the economy
fraud and insider abuse
regulation practices
- Question 2
3.125 out of 3.125 points
Insider thrift frauds took all of the following forms EXCEPT:
Selected Answer:
borrowing up
Answers: desperation dealing
borrowing up
covering up
collective embezzlement
- Question 3
0 out of 3.125 points
Reinsurance is a legitimate business practice in the insurance industry. It becomes a problem when:
Selected Answer:
insurance companies do not spread possible losses adequately
Answers: insurance companies fail to adequately diversify its investments
insurance companies do not spread possible losses adequately
reinsurers are undercapitalized
- / 4
insurance companies use reinsurers that are located outside the United States
- Question 4
3.125 out of 3.125 points
The Keating Five were:
Selected Answer:
United States Senators
Answers: the five institutions controlled by Keating
Keating and his four relatives who looted Lincoln Savings and Loan
five regulators bribed by Keating
United States Senators
- Question 5
0 out of 3.125 points
The insurance industry is largely regulated by:
Selected Answer:
the Federal government
Answers: the Federal government
Interstate Commerce Commission
individual states
Federal Trade Commission
- Question 6
3.125 out of 3.125 points
The primary investment vehicle for First Pension was:
Selected Answer:
non-existent mortgages
Answers: penny stocks
non-existent mortgages
- / 4
deal stocks
junk bonds
- Question 7
0 out of 3.125 points
Deviance in the savings and loan industry is an example of the organization being both ________ and ________.
Selected Answer:
corrupt; gullible
Answers: innocent; guilty
corrupt; gullible
victim; perpetrator
overregulated; under-regulated
- Question 8
0 out of 3.125 points
Alan Teale and his far flung group of companies took advantage of the public in all of the following
ways EXCEPT:
Selected Answer:
disability plans for professional athletes
Answers:
avoided the reinsurance scam
disability plans for professional athletes
liability policies for high school athletes
securing claims with treasury notes secured by the Sovereign Cherokee Nation Tejas
- Question 9
3.125 out of 3.125 points
Though thrift failures occurred nationwide, what two states accounted for the preponderance of the worst thrift frauds?
Selected Answer:
- / 4
California and Texas
Answers: Oklahoma and Texas
Florida and California
New York and California
California and Texas
- Question 10
3.125 out of 3.125 points
Regulator reaction to insurance scams can be very slow. In the case of Martin Bramson and his fake malpractice insurance policies for doctors, an insider had tipped regulators ________ before action was taken.
Selected Answer:
10 years
Answers: 15 years
10 months
10 years
- years
- Question 11
0 out of 3.125 points
Fake countries used to cheat the public and confuse regulators have actually been created ________.
Selected Answer:
on a sandbar
Answers: on rocks in the ocean
out of thin air
uninhabited islands
on a sandbar
- Question 12
- / 4
0 out of 3.125 points