When a DI Makes a Shift from an "Originate-To-Hold" Banking

question 31

Multiple Choice

When a DI makes a shift from an "originate-to-hold" banking model to an "originate-to-distribute" model, the change is likely to result in

• A)increased operating costs.
• B)increased interest rate risk.
• C)increased liquidity risk.
• D)decreased monitoring costs.
• E)decreased fee income.

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Definitions:

Amygdala

A part of the limbic system that apparently facilitates stereotypical aggressive responses.

Aggressive Reactions

Responses characterized by anger or hostility, often as a result of provocation or frustration.

Commitment

A pledge or promise to do something, often involving dedication to a cause, project, relationship, or goal.