13-70 Which of the following situations is similar to the externality effect?
A) Exercising an adverse material change in conditions clause as a last resort,thereby canceling or repricing a loan commitment.
B) Increase in the cost of funds above normal levels while many FIs scramble for funds to meet their commitments to customers during a credit crunch.
C) In a loan commitment,the borrower takes down only part of the funds over the specified time-period.
D) The buyer of a commercial letter of credit fails to perform as promised under a contractual obligation.
E) All of the above.
Correct Answer:
Verified
Q57: 13-45 The Clearing House Interbank Payments System
Q58: 13-55 Where are the contingent items disclosed
Q59: 13-50 The source of strength doctrine involving
Q60: 13-54 The amount of regulations that have
Q61: 13-77 The effect to an FI of
Q63: 13-63 This refers to the fee charged
Q64: 13-62 Back-end fees are charged as a
Q65: 13-69 What is seen as a possible
Q66: 13-79 Which of the following is true
Q67: 13-61 Up-front fees are charged as a
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents