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Question
Which of the following was not part of the Basle Agreement?a. Bank's required capital was linked to its composition of assets.
b. Banks are required to operate with a minimum level of equity.
c. The ownership of equity by banks was prohibited.
d. Capital requirements across countries were standardized.
e. The minimum total capital requirements were set to 8% of risk-adjusted assets.
Answer
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Related questions
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Which of the following is not true regarding collateralized mortgage obligations (CMOs)?
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b. CMO yields are generally higher than comparable Treasury yields.
c. CMOs exhibit little default risk.
d. All of the above are true.
e. Only a. and c. are true.
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a. Treasury bills
b. commercial paper
c. common stock
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b. A Lubbock County general obligation bond to build a new sewer plant.
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c. reducing diversification when the economy is slowing down.
d. increasing bond quality when quality yield spreads are low.
e. all of the above
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b. the difference between a fixed-rate yield and a floating-rate yield.
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d. the difference between expected inflation and the current Treasury bill rate.
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Eurobonds are subject to fewer regulations than U.S. issued bonds.
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b. currencies in the future at a specified time at an unknown exchange rate.
c. currencies in the future at an unspecified time at an unknown exchange rate.
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Q:
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The risk that a foreign government will suspend debt service payments is known as:
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Q:
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c. a representative office.
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Historically, what has prevented universal banks from operating in the United States?
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b. The Glass-Stegall Act
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Q:
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Q:
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Q:
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Q:
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Q:
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d. seed money.
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Q:
Loan covenants:
a. protect the borrower from lender interference in management.
b. are limited to "negative" provisions.
c. may limit discretionary cash outlays by borrowers.
d. are seldom enforced.
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Q:
In the credit process, which of the following activities falls under Credit Execution and Administration?
a. Financial statement analysis
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a. International risk
b. Foreign risk
c. Continent risk
d. Country risk
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Q:
In regards to repurchase agreements, the margin is:
a. a good faith deposit.
b. a loan against the repurchase agreement.
c. a risk-free guarantee.
d. the difference between the market value of the collateral and the amount of the loan.
e. all of the above.