The Fed Shares Its Depository Examining Functions with

question 107

Multiple Choice

The Fed shares its depository examining functions with

• A) the Federal Savings and Loan Insurance Corporation.
• B) the FDIC, Comptroller of the Currency, and state agencies.
• C) only the Comptroller of the Currency.
• D) National Credit Union administration and the FDIC.

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Definitions:

Time To Maturity

The duration remaining until the final payment date of a loan, bond, or other financial instrument, at which point the principal (and usually the final interest payment) is due to be paid.

Interest Rate Risk

The risk that the value of an investment will decrease due to a change in interest rates.

High Coupon Bond

A bond that offers a relatively high interest rate (or coupon rate) compared to the current prevailing rates of other similar bonds.

Interest Rate Sensitivity

A measure of how much the price of an investment, particularly bonds, changes in response to changes in interest rates.