| a. pre-credit loan line.| |
| b. an adjustable gap loan.| |
| c. loan commitment. | |
| d. an adjustable portfolio loan.| |
2. The primary difference between the payoff and the procure and assumption methods of handling failed banks is
| a. that the FDIC guarantees all deposits, not just those chthonian the $100,000 limit, when it uses the payoff method.| |
| b. that the FDIC is more likely to use the payoff ,method when the bank is large and it fears that depositor losses may spur business bankruptcies and other bank failures.| |
| c. that the FDIC garantees all deposits, not just those under the $100,000 limit, when it uses the corrupt and assumption method. | |
| d. that the FDIC is more likely to use the purchase and assumption method for small institutions because it will be easier to find a purchaser for them comp ard to large institutions.| |
3. Bank capital is listed on the _______ place of the banks balance sheet because it represents a ______ of funds.
| a. liabilities; source | |
| b. liabilities; use| |
| c. summation; use| |
| d. asset; source| |
4.
The process of transforming otherwise illiquid fiscal assets into marketable capital market instruments is known as
| a. program trading.| |
| b. securitization. | |
| c. arbitrage.| |
| d. internationalization.| |
5. Because of the wayward selection problem,
| a. lenders will write debt contracts that restrict certain activities of borrowers.| |
| b. lenders are reluctant to make loans that are not secured by collateral. | |
| c. lenders may refuse loans to individuals with high net worth, because of their greater proclivity to spring town.| |
| d. good credit risks are more likely to stress loans causing lenders to make a disproportionate...If you want to get a full essay, order it on our website: Ordercustompaper.com
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