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Question
According to a proposal under Dodd-Frank Wall Street Reform and Consumer Protection Act, lenders who are pooling and securitizing the mortgage loans they create and then selling them off should remain responsible for at least:
A. 10 percent of market risk attached to these loans.
B. 5 percent of market risk attached to these loans.
C. 10 percent of credit risk attached to these loans.
D. 5 percent of credit risk attached to these loans.
E. 50 percent of the credit risk attached to these loans.
Answer
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Related questions
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Which of the following adjustments are made to gross loans and leases to obtain net loans and leases?
A. Loan and lease loss allowance is added to gross loans.
B. Unearned income is subtracted from gross interest received.
C. Investment income is added to gross interest received.
D. Loan and lease loss allowance and unearned income is subtracted from gross loans.
E. Loan and lease loss allowance is subtracted from gross loans and investment income is added to gross interest received.
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The short-term securities of the bank, including T-Bills and commercial paper, are often called __________________________ because they are the second line of defense to meet demands for cash.
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C. underwriter's commitment report
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D. Population Density
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Which of the following would not be a telephone service that customers can get from a bank call center?
A. The current balance in their account
B. A fax copy of a loan application to the bank
C. List of what transactions have passed through the account
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A(n) _________________________ is an agreement between a buyer and a seller today which calls for the delivery of a particular security in exchange for cash at some future date for a set price.
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What is the yield to maturity on this T-Bill?
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Which of the following would be an example of a repriceable asset?
A. Money the bank has borrowed from the money market
B. Cash in the vault
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A bank is liability sensitive, if its:
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According to the textbook, the lackadaisical profit performance surrounding a merger may be explained by the:
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C. accounting irregularities when reporting earnings of the combined entity.
D. managerial hubris and sizeable merger premium that acquirers have to pay to shareholders of the acquired firms.
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