14 Which of the following is true of private placement of securities? Securities of private firms are sold to the investing public at lower prices. Subject to more stringent disclosure and informational requirements than those imposed by the SEC on publicly registered issues. They must be registered with the SEC. Securities are placed with few large institutional investors or wealthy individual investors. Public trading in these securities is not allowed. a 15 If the chosen maturity buckets have a time period that is too long, the repricing model may produce inaccurate results because the FI will be unable to accurately measure the quantity of rate sensitive liabilities. the FI will be unable to accurately measure the quantity of rate sensitive assets. there may be large differentials in the time to repricing for different securities within each maturity bucket. as the time to maturity increases, the price volatility increases. price changes will be overestimated. E. ta 16 Which of the following involves fixed premium payments and a benefit payout at the time of death that will depend on investment returns over the life of the policy? A. B. C. D. E. Term life. Universal life. Whole life. Endowment life. Variable life. a 17 Which of the following statements involving the promised return on a loan is NOT true? A. Compensating balances reduce the effective cost of loans for the borrower because the deposit rate typically is greater than the loan rate. Increased collateral is a method of compensating for lending risk. Compensating balances represents the portion of the loan that must be kept on deposit at the bank. Credit risk may be the most important factor affecting the return on a loan. Compensating balance requirements provide an additional source of return for the lending institution