1-93 When a DI Makes a Shift from an "Originate-To-Hold

question 18

Multiple Choice

1-93 When a DI makes a shift from an "originate-to-hold" banking model to an "originate-to-sell" 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:

Mere Exposure Effect

A psychological phenomenon whereby individuals develop a preference for things simply because they are familiar with them.

Mere Exposure Effect

A psychological phenomenon in which people tend to develop a preference for things merely because they are familiar with them.

Bystander Effect

A situation understood in social psychology where an individual's tendency to help decreases when they are not alone in noticing someone needs assistance.

Reciprocity Norm

A social rule that suggests individuals should return the favor or kindness that has been extended to them.