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I need help with these questions ASAP, thanks. QUESTION 3 One enduring truth of banking is that a. Bankers always seem willing to lend huge
I need help with these questions ASAP, thanks.
QUESTION 3 One enduring truth of banking is that a. Bankers always seem willing to lend huge amounts to borrowers with a limited potential to repay b. None of the options c. Credit ratings work, but only in the aggregate d. When liquidity dries up, bankers are typically able to ride out the storm by buying up other investor's debt at pennies on the dollar, holding it until the crisis is over, and then selling at a huge profit QUESTION 6 Euro credits feature rollover pricing a. Because of the rollover pricing feature, a Euro credit may be viewed as a series of shorter-term loans, where at the end of each time period (generally three or six months), the loan is rolled over and the base lending rate is repriced to current LIBOR over the next time interval of the loan b. The lending rate on these Euro credits is stated as LIBOR + X percent, where X is the lending margin charged depending upon the credit worthiness of the borrower. LIBOR is reset according to a set schedule C. Rollover pricing was created on Euro credits so that Euro banks do not end up paying more on Euro currency time deposits than they earn from the loans d. All of the options QUESTION 10 The Asian crisis a. Began in the fall of 2001 when Japan devalued the yen b. Followed a period of economic expansion in the region financed by record private capital inflows c. None of the options d. Followed a period of economic recession in the region coupled with record private capital outflows QUESTION 16 U.S. banks that establish subsidiary and affiliate banks a. Are allowed to underwrite securities and must provide FDIC insurance on their foreign-currency denominated demand deposits b. Are allowed to underwrite securities c. Must provide FDIC insurance on their foreign-currency denominated demand deposits O d. Can underwrite securities, but not accept dollar-denominated deposits QUESTION 17 Edge Act banks are so-called because a. They can only be chartered in states that are on the borders of the United Stateson the "edge" of the map b. None of the options c. Senator Walter E. Edge of New Jersey sponsored the 1919 amendment to Section 25 of the Federal Reserve Act to allow U.S. banks to be competitive with the services foreign banks could supply their customers O d. They are federally chartered subsidiaries of U.S. banks that are physically located in the United States and are allowed to engage in a full range of international banking activities
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