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

question 58

Multiple Choice

All else equal, advantages of a DI 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:

Secondhand Car

A vehicle that has had one or more previous owners before the current possession.

Acceptor

A drawee of a draft who has promised to honor the draft as presented by signing it on its face.

Draft

A written order by which the party creating it orders another party to pay money to a third party. Also called bill of exchange.

Instrument

A formal legal document that serves as evidence of a fact, act, or obligation, such as a deed, will, or contract.