Q11. In the credit process, which of the following activities falls under Credit Review?

a. loan committee reviews.

b. perfecting the security interest.

c. market research.

d. review loan documentation.

e. market research.

Q14. Interest rate risk:

a. rarely has an impact on bank earnings.

b. can be eliminated by matching fixed rate assets with variable rate liabilities.

c. varies inversely with the yield curve.

d. can be measured by the volatility of a banks net interest income given changes in the level of interest rates.

e. all of the above.

Q15. Preferred shares:

a. dividends may not be deferred.

b. claims are subordinate to common shareholders.

c. has characteristics of debt and common equity.

d. always pay fixed-rate dividends.

e. all of the above.