In general, the main variance among FIs is which of the following?
A)the risks associated with borrowing
B)the risks associated with lending
C)the composition of their balance sheet
D)is becoming more significant over time

Question

Quizplus · Accepted Answer

The composition of their balance sheet varies among financial institutions, with some holding more loans and others holding more securities, for example. This can have an impact on the types of risks they face and the strategies they employ. While the risks associated with borrowing and lending are important factors for FIs, they are not the main variance among them. There is no evidence to suggest that the variance among FIs is becoming more significant over time.

In General, the Main Variance Among FIs Is Which of the Following