A Depository Institution Can Make Highly Illiquid and Long-Maturity Loans

question 16

Multiple Choice

A depository institution can make highly illiquid and long-maturity loans with funds obtained by issuing transaction deposits because

• A) depository institutions tend to be owned by individuals with a high tolerance of risk.
• B) most transaction depositors have very transaction patterns.
• C) depositors, taken as a group, behave in a predictable manner.
• D) depository institutions are skilled at evaluating credit risks.
• E) depository institutions have a large pool of assets to draw from.

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Definitions:

Terrorists

Individuals or members of groups who use violence and intimidation, especially against civilians, in the pursuit of political aims.

Cyberdeviance

Involves activities on the internet that deviate from accepted social standards, including various forms of cybercrime and unethical digital behavior.

Computer Use

The operation and application of computers and related technology for processing information, entertainment, communication, and problem-solving.

Law Enforcement

Agencies and officers tasked with maintaining public order, enforcing laws, and preventing, detecting, and investigating criminal activities.