QUESTION 22

1. Covered interest arbitrage is possible when:

   		both currencies are appreciating.
   		the actual inflation rates are identical in both countries.
   		the difference in the interest rates in two countries exactly equals the spot-to-forward exchange rate differential.
   		the difference in interest rates in two countries is out of line with the spot-to-forward exchange rate differential.
   		none of the above.

2. QUESTION 24

3. The vast majority of FDIC insured institutions are classified as:

   		credit card banks.
   		agricultural banks.
   		consumer lenders.
   		commercial lenders.
   		mortgage lenders.

4. 6 points

   QUESTION 25

5. The purpose of the Truth in Lending Act of 1968 is to require lenders to quote:

   		home mortgage finance charges in standardized manner.
   		rates on all certificates of deposit in a standardized manner.
   		payments with and without credit life insurance.
   		consumer loan finance charges in a standardized manner.
   		finance charges on loans over $100,000 in a standardized manner.