* My CoursesThis CourseStudent Services HFC Online Video Tutoria1. Requiring banks to hold a certain level of cash reserves, insuringdeposits, and lending to banks that are illiquid are all ways that:A) commercial banks take responsibility for reducing the risks inherentin banking.B) the Federal Reserve reduces the risks. inherent in banking.C) the private market reduces the risks inherent in banking.D) the federal government reduces the risks inherent in banking.2. Non-bank institutions that act a lot like banks but are notregulated like banks, such as hedge funds, are collectively known as:A) thrift institutions.B) the Federal Reserve System.C) the shadow banking system.D) investment banks.3. Managing market risk requires reducing the potential impact ofon a bank's profits.A) declining levels of bank reservesB) rising interest ratesC) loans that don't get repaidD) having to sell assets quickly4. Which of the following is NOT an example of a depositoryinstitution?A) A thrift institutionB) An investment bankC) A commercial bankD) A credit union5. In the originate-to-distribute model of banking, which of thefollowing 1s NOT a way that banks tend to make profit on loans?A) By charging fees for closing the loansB) By charging a higher interest rate on loans than it pays deposttorsC) By charging fees to other institutions for continuing to service aloan once 1t's soldD) By pooling loans together and selling shares of that pool

Central bank or federal bank (in the US) refers to the national bank of a country which provides…

1. Requiring banks to hold a certain level of cash reserves, insuring deposits, and lending to banks that are illiquid are all ways that: A) commercial banks take responsibility for reducing the risks inherent in banking. B) the Federal Reserve reduces the risks. inherent in banking. C) the private market reduces the risks inherent fn banking. D) the federal government reduces the risks inherent in banking.

1. Requiring banks to hold a certain level of cash reserves, insuring deposits, and lending to banks that are illiquid are all ways that: A) commercial banks take responsibility for reducing the risks inherent in banking. B) the Federal Reserve reduces the risks. inherent in banking. C) the private market reduces the risks inherent fn banking. D) the federal government reduces the risks inherent in banking.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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