Pooling Risk

question 22

Multiple Choice

Pooling risk

• A)refers to a default contract made by a bank to other banks.
• B)refers to spreading the risk of loan default among all the depositors within the depository institution.
• C)is now illegal under the Nuisance Act of 2007.
• D)occurs when one person lends to an entire group or pool of borrowers.
• E)refers to the lower cost of obtaining funds from a depository institution.

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Definitions:

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A psychological theory that examines how life events, including significant transitions or traumatic experiences, influence an individual's development and behavior.

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