When a DI Makes a Shift from an 'Originate-To-Hold' Banking

question 11

Multiple Choice

When a DI makes a shift from an 'originate-to-hold' banking model to an 'originate-to-distribute' banking model, the change is likely to result in:

• A)increased operating costs
• B)increased interest rate and liquidity risk
• C)decreased monitoring costs
• D)decreased fee income

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Definitions:

Dollar Gross Profit

The total monetary gain computed by subtracting the cost of goods sold from the sales revenue of a company.

Net Sales

Gross sales less sales returns and allowances less sales discounts.

Cost of Goods Sold

Expenses directly linked to the production of a company's merchandise for sale, including both materials and labor costs.

Departments

Distinct areas or divisions within an organization, each dedicated to a specific function or purpose.