When a DI Makes a Shift from an "Originate-To-Hold" Banking

question 31

Multiple Choice

When a DI makes a shift from an "originate-to-hold" banking model to an "originate-to-distribute" model, the change is likely to result in

• A)increased operating costs.
• B)increased interest rate risk.
• C)increased liquidity risk.
• D)decreased monitoring costs.
• E)decreased fee income.

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Definitions:

Physiological Changes

Alterations or modifications in the functions or structures of living organisms, often as a response to environmental factors or developmental processes.

Emotions

Complex feelings that result from one's circumstances, mood, or relationships with others.

Self-generated Mood States

Emotional conditions that an individual can bring about on their own, through their thoughts and behaviors.

Greater Risk Taking

The propensity to engage in behaviors that have a potential for significant loss or dangerous outcomes.