An FI Funds a $5 Million Residential Mortgage in 2012

question 66

Multiple Choice

An FI funds a $5 million residential mortgage in 2012 by allocating capital and by issuing demand deposits. The mortgage represents a loan-to-value of 70 percent. The demand deposits have a reserve requirement of 10 percent and a deposit insurance premium of 23 basis points.
-What is the deposit insurance premium on the demand deposits issued to fund the mortgage?

• A)$11,756.
• B)$12,778.
• C)$11,500.
• D)$1,150.
• E)$9,200.

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Definitions:

Chronemics

The study of how time affects communication in different cultures, including perceptions of punctuality, time management, and the significance of time in interactions.

Ethnocentric Reactions

Responses or behaviors that are based on the belief that one's own ethnic group or culture is superior to others.

Verbal Differences

Variances in spoken language that can lead to misunderstandings or communication barriers among people from different linguistic backgrounds.

Internal Networks

Consist of the connections and interactions within an organization that facilitate communication, collaboration, and knowledge sharing.