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Question
Computerized markets that automatically match orders between buyers and sellers and are used primarily by institutions traders are called
A. OTC bulletin boards
B. SPIDRS
C. Index Markets
D. ECNs
E. Specialists
Answer
This answer is hidden. It contains 1 characters.
Related questions
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The bank keeps a capital-to-asset ratio of 8%. If the bank does not securitize the mortgages, they will be fully funded with demand deposits that have a reserve requirement of 10%. The demand deposits also have a deposit insurance premium of 0.20 cents per $100 of deposits. If the bank securitizes the mortgages, how much less capital will the bank require? If the savings from not having the required reserves and the deposit insurance premiums could be invested at 5%, what is the dollar opportunity cost of not securitizing?
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What is the total amount of net fee revenue generated from the mortgages over the year?
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A macro hedge is a hedge of a particular asset or liability exposure to a change in a macroeconomic variable.
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Buying a cap is similar to buying a call option on bond prices.
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The bank's one-year repricing gap is (Million $)A. $425.B. $285.C. $74.D. $140.E. $66.
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Due to convexity problems, banks are actually better off using the simpler repricing model to manage interest rate risk rather than the duration model.
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The cash flow from the interest a bank receives on a long-term loan that is normally reinvested is called the runoff from the loan.
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If a bank has a negative repricing gap, falling interest rates increase profitability.
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In a bank's three-month maturity bucket, a 30-year ARM with a rate reset in six months would be considered a fixed rate asset, but in its one-year maturity bucket, this ARM would be considered a rate-sensitive asset.
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Why might a bank face abnormal deposit drains?
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Explain how liquidity risk can lead to insolvency risk.
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In the absence of deposit insurance, a deposit is a _______________ to the bank's assets.A. pro rata claimB. first come/first serve claimC. full pay or no pay claimD. both A and BE. both B and C
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A bank meets a deposit withdrawal with one of the following alternatives. Which one of the following is an example of using stored liquidity to meet a deposit withdrawal?A. Increase in Euro dollar depositsB. Contacting an investment banker to find new corporate depositsC. Increasing Fed funds borrowedD. Issuance of a negotiable CDE. Selling the bank's holdings of T-bills
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A four-class CMO has Class A, Class B, Class C, and the residual Class Z securities outstanding. Which class has the longest duration?
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B. Class B
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D. Class Z
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Banks were willing to swap LDC loans for Brady bonds because:
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B. the bonds had variable interest rates.
C. the bonds were marketable and the loans were not.
D. the bonds were uncollateralized.
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More than 90% of loan sales are via assignments.
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