Question: Explain in general terms how savings institutions differ from commercial banks with respect to their sources of funds and uses of funds. Discuss each source
Explain in general terms how savings institutions differ from commercial banks with respect to their sources of funds and uses of funds. Discuss each source of funds for SIs. Identify and discuss the main uses of funds for SIs.
Describe the liquidity and credit risk of savings institutions, and discuss how each is managed.
What is an adjustable-rate mortgage (ARM)? Discuss potential advantages such mortgages offer a savings institution.
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