Assume That an FI's Average Loan Value Is $500 and the Average

question 54

Multiple Choice

Assume that an FI's average loan value is $500 and the average value of deposits is $450.The FI has liquid assets of $50.What is the FI's financing gap?

• A)$500 - $450 - $50 = $0
• B)$450 - $500 = -$50
• C)$500 - $450 = $50
• D)$500 - $450 + $50 = $100

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Definitions:

Federal Law

encompasses laws passed by the national government of the United States.

Artisan's Lien

A legal claim granted to artisans or mechanics against the property they have serviced or improved, ensuring payment for their work.

Real Property

Land and anything permanently attached to it, such as buildings and fixtures, legally recognized as immovable.

Consensual Lien

A security interest that is agreed upon by the debtor and creditor to secure payment or performance of an obligation.