Question 1: These statements are True or False? Please explain shortly:

1. The role performed by banks in which they stand behind their customers when those customers are unable to pay a debt obligation is known as the discounting valuable paper

2. The equity multiplier for a bank measures the amount of ownership equity of the bank and is one part of the evaluation of the bank's ROE

3. The process of loan review means that a loan committee must generally approve a loan before the borrower is told the loan is approved

4.If the economy slows down a bank should review its outstanding loans more frequently

5. Confirmative covenants in loan contract require the borrower to take certain actions