19. The Fed allowed nonbank financial institutions to borrow during the mortgage crisis and even allowed nonbanks to sw This was an attempt by the Fed to reduce money from the discount window ap mortgages for Treasury securities. at institutions. A. operational risk B. technological risk C. liquidity risk D. foreign exchange risk E. diversifiable risk 20. Insolvency risk at a financial intermediary (FI) is the risk A. that promised cash flows from loans and securities held by Fls may not be paid in full. B. incurred by an FI when the maturities of its assets and liabilities do not match. C, that a sudden surge in withdrawals may require an FI to liquidate assets quickly D. incurred by an FI when its investments in technology do not result in cost savings E. that an Fl may not have enough capital to offiet a sudden decline in the value of its assets. 21. A bank has Tier I capital of $90 million and Tier 2 capital of $70 million. The bank has total assets of $2,522 million and risk-weighted assets of $2,017.6 million. This bank is A. critically undercapitalized. B. significantly undercapitalized. C. undercapitalized. D. adequately capitalized E. well-capitalized