1) Credit risk is the risk that an insufficient number of borrowers will apply for loans or credit. interest rates will rise after a loan has been...

1)

Credit risk is the risk that

an insufficient number of borrowers will apply for loans or credit.

interest rates will rise after a loan has been granted.

interest rates will fall after a loan has been granted.

borrowers might default on their loans.

2)

The interest rate on interbank loans is called the

discount rate.

federal funds rate.

repo rate.

prime rate.

3)

What is the current limit on balances that are covered by federal deposit insurance?

$100,000

$250,000

$500,000

$1,000,000

4)

In banking, the spread refers to the difference between the

interest rate on long-term bonds and the interest rate on short-term bonds.

interest rate on car loans and the interest rate on home mortgages.

average interest rate earned on assets and the average interest rate paid on liabilities.

bid and asked prices on a bond.

5)

An most important service provided by underwriters is

lowering of information costs.

dealing with problems of moral hazard.

insuring firms against loss from fire.

insuring firms against loss from employee theft.