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Question
Which of the following is true about GNMA pass-through securities?a. Interest and principal from borrowers are passed through to investor.
b. Federally insured imply mortgage loans guaranteed by the FHA, VA, and other authorized federal agencies.
c. GNMA pass-throughs are secured by mortgage pools originated by mortgage banks, commercial banks, or other mortgage lending institutions.
d. all of the above
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
never be examined by the
a. state banking authority
b. FDIC
c. OCC
d. Fed
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Which of the following regulators is also the lender of last resort?
a. FDIC
b. Office of Comptroller of Currency
c. Office of Thrift Supervision
d. Federal Reserve System
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If FDIC tends to charge depository institutions less than the full cost of deposit insurance in its risk-based deposit premium system,
a. the banks will be upset with FDIC.
b. the risk-based premium system will adequately "tax" the excess risk returns of banks that have made risky investments.
c. the moral hazard associated with deposit insurance is still present.
d. the regulator will not have to worry about banks taking excessive risk.
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If bank managers lobby to maintain America's traditional "dual banking" structure, they:
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b. want to maintain the right to make loans and take deposits.
c. want the right to fight competition.
d. want the option of remaining a bank or a bank holding company.
Q:
The presence of moral hazard incentives
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d. increases the role of markets in disciplining excessive risk-taking.
Q:
All of the following are reasons to regulate depository institutions except:
a. To promote safety and soundness.
b. To affect the structure of banking.
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Private or state deposit insurance funds have not successfully prevented panic because
a. the size of the funds was more than enough to pay all depositors.
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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:
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Q:
Regulations provide financial institutions certain benefits such as
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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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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.
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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.
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e. both a and b
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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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b. The U.S. bank is paid dollars by its foreign borrowers.
c. A U.S. bank receives an interest payment from a French borrower paid in Euros.
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International bank lending is characterized by all of the following except that loans
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d. are priced relative to the LIBOR.
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Which of the following forms of international banking organization was intended to bring offshore, shell banking back to the U. S.?
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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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b. stabilize interest rates.
c. establish minimum capital ratios for international banks.
d. maintain fixed exchange rates.
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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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c. borrow money to invest in stocks.
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Q:
Which of the following is not the difference between hedge funds and mutual funds?
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Mutual fund managers can keep their cash balances low by all but one of the following:
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