Question
An FI funds a $5 million residential mortgage in 2017 by allocating capital and by issuing demand deposits. The mortgage represents a loan-to-value of 70
An FI funds a $5 million residential mortgage in 2017 by allocating capital and by issuing demand deposits. The mortgage represents a loan-to-value of 70 percent. The demand deposits have a reserve requirement of 10 percent and a deposit insurance premium of 23 basis points.
What would have been the capital requirements if the FI had securitized the mortgage?
| A. | $200,000 | |
| B. | $0 | |
| C. | $500,000 | |
| D. | $400,000 | |
| E. | $5,000,000 |
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Ebay Tips And Tricks To Increase Your Ebay Sales
Authors: Jessica Wilson
1st Edition
1774854015, 978-1774854013
