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A bank that makes a leveraged loan (HLT) to a company with an 75% debt ratio is exposed to excessive operating risk. True False Banks

A bank that makes a "leveraged loan" (HLT) to a company with an 75% debt ratio is exposed to excessive operating risk.

True
False

Banks that accept demand deposits and savings deposits from a geographic market defined by income or social status must also make loans in that same market.

True
False

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