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and hold" model, financial institutions are exposed to risks, including which of hold In the "originate A) Exchange rate risk. B) Credit risk c) Sovereign risk D) Off-balance-sheet risk of financial institutions such as commercial banks, insurance, and investment banks under one roof has led to the creation of a business entity called the A) Financial services holding company B) Mutual savings bank. c) Commercial banking company. D) Bank holding company. The passage of the Securities Act of 1934 designated that the regulator of financial markets and exchanges in the US? A) Securities and Exchange Commission (SEC). B) Federal Reserve Bank. C) Office of the Comptroller of the Currency (0Cc). D) United States Treasury. 27 would be the main 28. Which of the following statements explains the liquidity premium theory of the term structure of interest rates? A) Investors will pay higher prices for longer-term securities. B) Investors demand a lower yield for securities that cannot be sold quickly at high prices C) Investors demand a higher yield on longer-term securities with greater price risk and less marketability D) Investors will pay higher prices for securities with greater price risk and less marketability 29. According to the market segmentation theory of the term structure of interest rates A) Investors are indifferent between securities of different maturities B) Investors prefer certain maturities and will not normally switch out of those maturities. C) The slope of the yield curve becomes flatter as the supply of securities decreases in the short term market and increases in the long-term market. The slope of the yield curve becomes latter term market and decreases in the long-term market. D) as the supply of securities decreases in the short