Pooling risk
A) refers to a default contract made by a bank to other banks.
B) refers to spreading the risk of loan default among all the depositors within the depository institution.
C) is now illegal under the Nuisance Act of 2014.
D) occurs when one person lends to an entire group or pool of borrowers.
E) refers to the lower cost of obtaining funds from a depository institution.
Correct Answer:
Verified
Q45: A bank can create money by
A)selling some
Q46: The reserves of a bank include
A)the cash
Q47: When the Bank of Canada makes an
Q48: Choose the statement that is incorrect.
A)A chartered
Q49: Which of the following is an economic
Q51: Excess reserves are
A)desired reserves minus actual reserves.
B)required
Q52: The Bank of Canada is the lender
Q53: Which of the following statements about depository
Q54: Which of the following is an asset
Q55: The monetary base consists of the sum
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