True/False Questions 1.When the Fed finds it necessary to slow economic activity, it allos interest rates to all 2. In duration analysis, the times at which cash flows are received are weighted by the relative importance in present value terms of the cash flows arriving at each point in time, 3. The primary difiulty in arranging a syndicated loan is having all of the various lending and borrowing parties reach agreement on terms, rates, and collateral. 4. Portfolio risk can be reduced through diveification only if the returns of the loans in the portfolio ore negativelycorrelated 5. Abnormally large and unexpected deposit withdrawals can occur because of concerns by depositors about a bank's solvency relative to other banks. 6.The spot foreign exchange market is where forward and futures contracts and swap agreements are transacted. 7. All of the following are relevant determinants of sovereign risk exposure: the rate of domestic money supply growth; the varionce of export revenue, and the size of the population 8. Calculating the risk of a multi-asset trading portfolio requires the consideration of the correlations of retums between the different assets. 9. The Federal Reserve requires bonks to complete schedule L with their quarterly call reports to list the notional size and variety of off-balance-sheet activities. 10. Basis risk occurs on a loan commitment because the spread of a pricing index over the cost of funds may vary