QUESTION 30 What is a "Captive Finance Unit A subsidiary of a bank for the purpose of taking assets off balance sheet Aunt inside a corporation which argrated loans to finance purchase of their own products An insurance company branch which operates in another state to avoid londing and orgination restrictions in its home state A finance company which uses preson tabor to operato call centers to find viable borrowers at a lower chont acquisition cost QUESTION 31 What is the core problem with adverse selection? the poolt insurance buyers is too small, the policies got too expensive thus forcing out the low-risk buyers, thus driving up prices it the pool of insurance buyers is too largo, the insurance companies can't afford the administrative costs and have to raise rates Reinsurance companies can create a consortia to drive up rates and exclude insurance companies from those funding channels Mortone loans to people with wouk or adverse credit can cause a strain on tenders' ability to originate now assets. QUESTION 32 Liityiskis easer to calculate than property risk since property damage must be assessed by experts True False QUESTION 33 Banks primarily intermediate between Savers who want to lend long to get a higher rate and borrowers who want to borrow short form to got a lower interest rate Corporate clients who want a safe place to park the cash and savers who want to make long term loans to corporates High-yield borrowers and investment grade lenders Agents who want their cash highly liquid and agents who want to secure their borrowings long term