Which of the following statements regarding commercial banks (CBs) is true?

A. The largest portion of loan portfolios in CBs consists of commercial and industrial loans.

B. CBs typically have long-term assets but short-term liabilities.

O C. Since 1984, the number of CBs in the US has increased over time.

D. CBs have lower leverage than industrial firms for risk reasons.

Which of the following statements regarding the off-balance-sheet (OBS) activities of depository institutions (DIs) is true?

A. OBS activities are associated with additional regulatory burdens and taxes.

B. OBS activities include contingent events recorded in the balance sheets.

O C. The exposures of OBS altivities could reduce or increase financial risk.

D. OBS activities typically generate fees for Fis without exposure to risk.

Which of the following rates is the Fed fund rate?

A. The rate that a commercial bank lends to another commercial bank for overnight reserves

B. The rate that the Fed lends to commercial banks for overnight reserves

O C. London Inter-Bank Offer Rate (LIBOR)

D. The rate that commercial banks lend to their corporate customers for international trades

Which of the following firms are more likely to adopt best efforts when they issue new shares?

A. Smaller firms

B. Firms with a lot of intangible assets

C. Well known firms

D. New startup firms