multi-choice question. Plz answer all. thanks

Question 1: What factors are encouraging financial institutions to offer overlapping financial services such as banking, investment banking, brokerage, etc.? I. Regulatory changes allowing institutions to offer more services II. Technological improvements reducing the cost of providing financial services III. Increasing competition from full-service global financial institutions IV. Reduction in the need to manage risk at financial institutions a. I only b. II and III only c. I, II, and III only d. I, II and IV only e. I, II, III and IV

Question 2: A decrease in reserve requirements could lead to an a. Increase in bank lending b. Increase in the money supply c. Increase in the discount rate d. Increase in bank lending and an increase in the money supply e. Increase in bank lending and an increase in the discount rate

Question 3: The is worth 1.2569 euros and the euro is worth $1.5568. Statistical analysis indicates that when the euro rises 1 percent against the dollar, the pound rises 0.5 percent against the euro and vice versa. A U.S. bank has assets of 40 million that mature in one year funded with liabilities of 55 million due in six months. The bank would be hurt by I. an increase in the value of the euro against the dollar. II. a decrease in the value of the euro against the dollar. III. an increase in euro interest rates relative to pound interest rates. IV. an increase in pound interest rates relative to euro interest rates. a. I only b. I and II only c. I and III only d. II and IV only e. II and III only

Question 4: In the US the FDICs overall evaluation of the riskiness of a depository institution is measured by the _______________. a. Basel Accord b. CRA rating c. CAMELS rating d. Exposure scale e. FFIEC score

Question 5 Altmans Z-score model suffers from several weaknesses. These include which of the following? I. The Z-score model is not a statistically sound tool to use in making a lending decision. II. The appropriate weights on the Z-score model is likely to change unpredictably over time. III. The Z-score model ignores nonquantifiable behavioural factors, such as a relationship with the bank and reputation. IV. Z-scores are changed at generally infrequent intervals due to the infrequency with which accounting variables are updated. a. I and II only b. II and III only c. II, III and IV only d. I, II and III only e. I, II, III and IV

Question 6: A bank has a negative duration gap. Interest rates decline. Which one of the following best describes the effects of the interest rate change? a. The bank's market value of equity is unchanged since the market value of its assets and liabilities moves in the same direction. b. The bank's market value of equity goes up because the market value of its assets goes up by more than the market value of its liabilities goes down. c. The bank's market value of equity goes down because the market value of its assets goes up by more than the market value of its liabilities goes down. d. The bank's market value of equity goes down because the market value of its assets goes down by more than the market value of its liabilities goes down. e. The bank's market value of equity goes down because the market value of its liabilities increases by more than the market value of its assets increases.

Question 7: To be well-capitalized, a bank in the US must have a leverage ratio of at least ____________ percent, Tier I capital to risk-adjusted asset ratio of at least ____________ percent, and a total risk-based capital ratio of at least ___________ percent. a. 4; 4; 8 b. 5; 6; 10 c. 3; 3; 8 d. 4; 8; 4 e. 4;6;10

Question 8: A bank that seeks to increase its risk-adjusted capital ratio has a number of options at its disposal including: a. Issue new equity, such as through a rights issue to existing shareholders, an equity offering on the open market or placing a bloc of shares with an outside investor. b. Changes to the assets side of its balance sheet, for example, the bank can run down its loan portfolio, or sell assets outright, and use the proceeds of loan repayments or asset sales to pay down debt. c. Reduce its risk-weighted assets by replacing riskier (higher-weighted) loans with safer ones, or with government securities. d. All of the answers

Question 9: Which of the following arguments for the independence of central banks is NOT correct? a. Independence is necessary to preserve monetary restraint b. Independence is necessary to impose discipline on fiscal policy c. When elected leaders exercise influence over interest rates, they may loosen monetary policy in election years, accepting higher inflation as the price of lower unemployment d. When the governments rack up enormous debt, a dutiful central bank should adjust its monetary-policy target and print money to cover the fiscal shortfall

Question 10: The Fed allowed nonbank financial institutions to borrow money from the discount window during the mortgage crisis and even allowed nonbanks to swap mortgages for Treasury securities. This was an attempt by the Fed to reduce ________________ at institutions. a. operational risk b. technological risk c. liquidity risk d. foreign exchange risk e. diversifiable risk