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.

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Definitions:

Occupation

A person's chosen or main vocation, job, or employment, often tied to their identity, skills, and economic livelihood.

Latent Function

A term in sociology that refers to the unrecognized or unintended consequences of any social process.

Youth Culture

The way youngsters live, and the norms, values, and practices they share, distinct from adult society and often characterized by music, fashion, language, etc.

Parents' Values

The beliefs and moral principles that parents consider important and seek to instill in their children.