QUESTION 46

In financing the federal deficit, the central bank of the United States borrows from the public by issuing Treasury securities which are sold at auction according to a schedule that is published quarterly. The central bank determines the types and amounts of Treasury securities sold at auction with the goal of achieving the lowest financing costs for the federal government over time.

True

False

1.96078 points

QUESTION 47

The overall effect of the Fed's large-scale asset purchases between 2008-2014 was to put downward pressure on yields of a wide range of longer-term securities, support mortgage markets, and promote a stronger economic recovery.

True

False

1.96078 points

QUESTION 48

Dime Community Bancshares has a single source of funds to support its lending and investment activities. This source is deposits of households.

True

False

1.96078 points

QUESTION 49

The investment policy of Dime Community Bancshares limits a combined investment in securities issued by any one entity, with the exception of obligations of the U.S. Government, federal agencies and GSEs.

True

False

1.96078 points

QUESTION 50

Since the financial crisis of 2008-2009 management of Dime Community Bancshares has refused to invest in mortgage-backed securities. The argument is that MBS are illiquid and too risky.

True

False

1.96078 points

QUESTION 51

Dime Community Bancshares originates both adjustable-rate mortgages (ARMs) and fixed-rate loans.

True

False