21.Examples of off-balance-sheet activities for banks include

____

A)Trading in financial futures

B)Loan sales

C)Issuing letters of credit

D)All of the above

22.Which of the following is a transaction deposit?

____

A)Money market deposit accounts (MMDAs)

B)Guaranteed investment certificates (GICs)

C)Negotiable certificates of deposit (CDs)

D)1-year non-redeemable term deposits

E) None of the above

13.Which of the following reason may explain why entrepreneurs donate their personal funds to start a new business?

____

A)The contribution serves as a signal to venture capitals

B)The contribution provides incentive to expend efforts

C)The contribution retains a portion of the firms equity

D)All of the above

14.One of the primary reasons for organizing venture-capital firms as closed-end mutual funds is

____

A)To reduce tax liabilities

B)To take advantage of centralization

C)To provide stability

D)To increase the importance of the limited partners

15.In return for providing funds for buyouts, venture capitals receive

____

A)Long-term bonds of the firm

B)Short-term bonds of the firm

C)An equity position in the firm

D)Ownership of the entire firm