Overdrafts are a result of a. loans made against certificates of deposit b. banks paying wire transfers made during one business day c. banks extending credit beyond the amount specified in a line of credit
Overdrafts are a result of a. loans made against certificates of deposit b. banks paying wire transfers made during one business day c. banks extending credit beyond the amount specified in a line of credit
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Question
Overdrafts are a result of
a.
loans made against certificates of deposit
b.
banks paying wire transfers made during one business day
c.
banks extending credit beyond the amount specified in a line of credit
d.
banks paying on checks or wire transfers drawn on uncollected balances.
Loan participations are:
a.
parts of loans that are sold to banks
b.
participation in the underwriting
c.
parts of securitized investments
d.
downstream investment
Convenience use of credit cards refers to
a.
the line of credit may be raised as needed
b.
amounts owed being paid in full when billed
c.
the open-end use of the card
d.
none of the above
Expert Solution
Step 1
Very easy and low cost convenient way of getting loan are draft loans.
Step 2
option A is correct
Loan made against certificate of deposit.
Draft loan are given by banks against deposits made in banks.
Option A is correct
Parts of loan are sold to other banks.
Lead bank give loans and lead bank sell part of loans to other bank
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