Which of the Following Allows Depository Institutions to Borrow for a Fixed

question 12

Multiple Choice

Which of the following allows depository institutions to borrow for a fixed term against a variety of collateral that is normally accepted for discount window loans?

• A) Term Auction Facility
• B) Term Securities Lending Facility
• C) Primary Dealer Credit Facility
• D) Troubled Asset Relief Program
• E) Housing and Economic Recovery Facility

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Definitions:

Debt-to-equity Ratio

An indicator showing the comparative levels of shareholders' equity and debt utilized in the financing of a company's assets.

Times Interest

A financial ratio that measures a company's ability to meet its interest obligations, calculated by dividing earnings before interest and taxes (EBIT) by the interest expenses.

Equity Multiplier

A financial leverage ratio that measures the portion of a company’s assets that are financed by stockholders’ equity, indicating the level of debt used to finance assets.

Current Ratio

An indicator of a company's proficiency in paying off its short-term dues using the assets it currently possesses.