Which of the Following Statements Is True

question 44

Multiple Choice

Which of the following statements is true?

• A)Large increases in the value of the OBS assets can render an FI economically insolvent.
• B)Large increases in the value of the OBS liabilities will not render an FI economically insolvent as the liabilities are only contingent.
• C)Large increases in the value of the OBS liabilities will not render an FI economically insolvent as the net worth of the institution will not be affected.
• D)Large increases in the value of the OBS liabilities can render an FI economically insolvent.

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Definitions:

Common Name

The simplified, non-scientific name of a chemical substance or organism that is generally known and used.

Compound

A substance made up of two or more different elements chemically bonded together in a fixed ratio.

Mutually Exclusive

Two events that cannot happen at the same time in a given experiment or situation.

P(A|B)

The conditional probability of event A occurring given that event B has occurred.