During the recent financial crisis and the Great Recession, credit unions (CUs) were less affected than other depository institutions (DIs). Which of the following statements is not true between CUs and other DIs such as commercial banks (CBs)?

	A.	CUs are exempt from taxes, but CBs are not.
	B.	CUs have more discretionary lending than CBs because CUs are exempt from Community Reinvestment Act of 1977.
	C.	CUs and CBs have a large portion of their loan portfolios in commercial real estates.
	D.	CUs usually have a smaller geographic footprint than CBs.

QUESTION 14

Which of the following statements regarding the off-balance-sheet (OBS) activities of depository institutions (DIs) is true?

	A.	OBS activities typically generate fees for FIs without exposure to risk.
	B.	The exposures of OBS activities could reduce or increase financial risk.
	C.	OBS activities include contingent events recorded in the balance sheets.
	D.	OBS activities are associated with additional regulatory burdens and taxes.

QUESTION 15

A property-casualty (PC) insurer reports $430MM losses on fire insurance, $595MM earned premiums, and $95MM loss adjustment expenses. What is the PC insurer's combined ratio?

	A.	0.88, indicating that this PC insurer is unprofitable.
	B.	1.12, indicating that this PC insurer is unprofitable.
	C.	1.12, indicating that this PC insurer is profitable.
	D.	0.88, indicating that this PC insurer is profitable.