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Question
A bank which hedges its future funding costs in the T-bill futures market isa. hedging perfectly.
b. accepting some basis risk.
c. speculating.
d. accepting some default risk in the futures position.
Answer
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Related questions
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In recent years, know-your-clients (KYC) is required by international financial regulators. In the U.S., what is the act that requires financial institutions to share information about customer identities with appropriate government agencies?
a. The USA Patriot Act
b. The Sarbanes-Oxley Act
c. The 9/11 Act
d. The U.S. Treasury Department Act
e. The Gramm-Leach-Bliley Act
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A state-chartered bank which is not a member of the Federal Reserve System will
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Q:
The presence of moral hazard incentives
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Moral hazard incentives for undesirable manager behavior may have been created by
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Financial institutions are regulated for the following reason(s):
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In a purchase and assumption of a failed bank, an assuming bank may be required to invest funds for all but one of the following reasons:
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Q:
The maximum amount of FDIC deposit insurance per eligible retirement account is
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Q:
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Q:
Bank capital is the most reliable cushion that prevents a decline in asset values from threatening the integrity of bank deposits.
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Bailout of large banks by federal regulators is an example of market discipline.
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Banks are regulated in part to protect the nation's money supply, much of which is a liability of the banking industry.
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A "too big to fail" policy encourages small banks to take higher risks.
Q:
The Office of the Comptroller of the Currency (OCC) is the oldest bank regulatory agency.
Q:
A foreign branch office of a U.S. bank is regulated by
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b. the host country bank regulation.
c. the FDIC.
d. the SEC.
e. both a and b
Q:
All of the following are techniques reducing credit risk in international lending except
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b. pooling risk through syndication with other banks.
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Which of the following is associated with the currency risk of international lending by a U.S. bank?
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b. The U.S. bank is paid dollars by its foreign borrowers.
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Q:
Which of the following forms of international banking organization was intended to bring offshore, shell banking back to the U. S.?
a. Edge Act banks
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Q:
While country central banks have pursued their own country interests, recently under the framework of the Bank for International Settlements, central banks from leading economies have agreed to
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Q:
Most large international loans are funded in the Eurocurrency market.
Q:
If a hedge fund manager focused on short-selling of stocks, he/she would
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b. invest in companies with high future growth prospects.
c. borrow money to invest in stocks.
d. select companies where the future supply of securities might exceed demand.
Q:
Which of the following is not the difference between hedge funds and mutual funds?
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Q:
Hedge funds would provide investor portfolio diversification benefits if:
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Which of the following mutual fund types is likely to have the highest risk exposure?
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c. balanced funds
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Q:
Mutual fund managers can keep their cash balances low by all but one of the following:
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