QUESTION 35 1 points Save Answer For commercial banks, interest expense typically exceeds interest income. O TRUE O FALSE. QUESTION 36 1 points Save Answer The designers of the Federal Reserve Act meant to create a central bank characterized by its O system of checks and balances and decentralization of power. strong concentration of power in the hands of a few people. O inability to function as a lender of last resort. O responsiveness the electorate. QUESTION 37 1 points Save Answer Commercial banks have low rates of return on assets and high rates of return on equity. TRUE O FALSE QUESTION 38 1 points Save Answer The main tool of monetary policy is: O the discount rate the reserve ratio O open market operations O the margin ratio O credit rationing. QUESTION 39 1 points Save Answer If you were to take a mortgage loan nowadays you would want a variable rate mortgage. O TRUE. FALSE QUESTION 40 1 points Save Answer Balloon loans typically require the borrower to pay the entire amount owed at the term of the loan. O TRUE FALSE