Question

The federal agency that regulate banks is known as

a) Office of Bank Supervision.
b) Securities and Exchange Commission.
c) Office of Management and the Budget.
d) Office of the Comptroller of the Currency.

Answer 1

The federal agency responsible for bank regulation is the Office of the Comptroller of the Currency (OCC). They ensure banks maintain positive net worth and moderated risk levels. Other agencies like FDIC and NCUA also play roles in the financial system's supervision.

Step-by-step explanation:

The federal agency that regulates banks and is responsible for ensuring that they have a positive net worth and are not undertaking too high a level of risk is the Office of the Comptroller of the Currency (OCC). The OCC operates under the U.S. Department of the Treasury and conducts on-site reviews of national banks and savings and loan institutions, as well as foreign banks with branches in the United States.

Furthermore, the Federal Deposit Insurance Corporation (FDIC) ensures bank deposits up to $250,000, and the National Credit Union Administration (NCUA) supervises credit unions. Additionally, the Federal Reserve supervises bank holding companies. It's important to note that while similar sounding, the Securities and Exchange Commission (SEC) regulates securities markets, not banks.