7. Factoring can be summarized by which of the following . Equipment leasing b. Servicing mortgage factors c Purchasing corporate accounts receivables at a discount d. Financing automobile purchases e. Making installment loans to customers 8. As the economy weakens, one would expect investment in investment in funds to increase and funds to decrease. a. Money market mutual; equity b. Equity; bonds c. Municipal bond; money market mutual d. Corporate bond; municipal bond e. Long-term; short-termm 9. If a bank relies solely on purchased liquidity, the bank will likely a. Maintain large amounts of liquid assets b. Fund its loan commitments with asset sales c. Be required to raise equity capital quickly d. Be required to borrow money at short notice e. Be forced to liquidate liabilities at fire-sales prices 10. What of the following can create liquidity risk for a life insurer? I. Unexpectedly high number of policy surrenders Il. Unexpectedly low number of new policies sold IlI. Natural Disaster a. I only b. Il only c. I and Il only d. Il and IlI only e. I, II, and III 11. What is the primary risk of investing in "safe" financial instruments, such as bonds and money market instruments? a. Credit Risk b. Liquidity Risk c. Market Risk d. Country Risk e. Interest Rate Risk