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Question
When the financial system has achieved a high degree of efficiency,a. Borrowers are able to finance at the highest possible cost.
b. Surplus spending units are able to receive the lowest return on their savings.
c. Transaction and intermediation costs are low.
d. Lenders will have a limited choice of financial investments.
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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a. FDIC
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c. the moral hazard associated with deposit insurance is still present.
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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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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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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.
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The Office of the Comptroller of the Currency (OCC) is the oldest bank regulatory agency.
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A foreign branch office of a U.S. bank is regulated by
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c. the FDIC.
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All of the following are techniques reducing credit risk in international lending except
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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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Most large international loans are funded in the Eurocurrency market.
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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.
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Mutual fund managers can keep their cash balances low by all but one of the following:
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