Pooling Risk

question 94

Multiple Choice

Pooling risk

• A)refers to the lower cost of obtaining funds from a depository institution.
• B)is now illegal under the Nuisance Act of 2014.
• C)occurs when one person lends to an entire group or pool of borrowers.
• D)refers to a default contract made by a bank to other banks.
• E)refers to spreading the risk of loan default among all the depositors within the depository institution.

---

Definitions:

Public Support

Financial or non-financial assistance given by the general public to nonprofit organizations through donations, grants, or services.

Contributions

Financial or other forms of aid provided by individuals or entities to support a cause, project, or entity.

Contributions

Money, goods, or services given to a business or a non-profit entity without any expectation of return, often for charitable reasons.