Which of the following is true for fed fends and repurchase agreements (RP)

a.

RP rates is normally higher than fed funds rates

b.

RP requires fewer negotiations than fed funds

c.

RP rates is normally less volatile than fed funds rates

d.

Both RP and fed fund require collaterals

An FI's net liquidity position can

a.

Increase with the amount borrowed from the Fed via discount window loans

b.

Increase with the amount of Treasury bills holding

c.

Decrease with the excess cash reserves

d.

Decrease with the maximum amount of borrowed funds available

Which of the following is not a reason why significant technological improvement in financial services is unlikely to happen within traditional banks?

a.

The need to protect existing businesses

b.

Regulatory burden

c.

Branch networks

d.

Legacy IT systems

e.

Lack of professional technology team

Which of the following items is not subject to reserve requirements regulation

a.

NOW accounts

b.

Demand deposits

c.

Money market deposit accounts

d.

None of the options

The system of flat deposit insurance premium formerly used in the U.S.

a.

enhances bank safety and soundness because it discourages bank risk taking.

b.

reduces bank safety and soundness because it encourages bank risk taking.

c.

places banks that are considered "too big to fail" at a disadvantage.

d.

has no impact on bank safety and soundness.