All Else Equal, Advantages of a DTI Operating as an Asset

question 54

Multiple Choice

All else equal, advantages of a DTI operating as an asset broker in regard to mortgages includes all of the following EXCEPT

• A)lower regulatory taxes.
• B)increased fee-based income.
• C)increased liquidity.
• D)decreased asset and liability duration mismatch.
• E)increased capital requirements.

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Definitions:

Cumulative Probability

The probability that a random variable takes on a value less than or equal to a specified value, often visualized in the form of a cumulative distribution function.

Interval of Random Numbers

The range between the smallest and largest numbers in a set that has been chosen randomly.

Random Numbers

Sequences of numbers generated in such a way that each number has an equal chance of being any value within the defined range, used in simulations and probabilistic calculations.

Expected Demand

An estimate of the quantity of a product or service that consumers will purchase in the future, often used for planning and inventory management.