Question $8$

$.........$ one of the CAMELS Ratings which involves a process of decisions on how deposited funds should be allocated, and these decisions determine the bank$$s level of credit risk.

Capital adequacy.

Management

Liquidity

Earnings

Asset quality

Question $9$

The Abu Dhabi investment bank agrees to underwrite an issue of $20$ million shares of stock for Emaar properties. On a firm commitment basis. Abu Dhabi investment bank pays AED$10\mathrm{.}50$ per share to Emaar properties, for the $20$ million shares of stock. It then sells those shares to the public for AED$11\mathrm{.}20$ per share.

What is the profit $($loss$)$ to the investment banker?

Loss of $14,000,000$ AED

Profit of $14,000,000$ AED

Profit of $2,000,000$ AED

Loss of $2,000,000$ AED

Question $10$

$.........$ Represent a liability to the borrowing bank and an asset to the lending bank. Also, the length of loan commonly extends from one day to a few weeks.

Repurchase agreement.

Federal Funds Purchased

Money Market Deposit Accounts

Savings Deposits.

Question $11$

The Sarbanes$-$Oxley $($SOX$)$ Act was enacted in $2002$ to

Allow affiliations between banks, securities firms, and insurance companies.

Ensure a more transparent process for reporting on a firm$$s productivity and financial condition.

Protecting against the risk of default on bonds and mortgage$$backed securities$.$

To prevent any firm that accepted deposits from underwriting stocks and bonds of corporations.