Question: 1. The term structure of interest rates is the basic determinant of fixed interest rate levels and variable interest rate caps that banks use. a.

1. The term structure of interest rates is the basic determinant of fixed interest rate levels and variable interest rate caps that banks use.

a.

True.

b.

False.

2. Indicate whether you agree or disagree with the following statement: Loan pricing models are compiled by credit departments of banks.

a.

Agree.

b.

Disagree.

3.

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