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29. What is a potential problem with hedging assets? A. No derivatives on assets exist...

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29. What is a potential problem with hedging assets? A. No derivatives on assets exist B. Problems may arise if bank hedges illiquid assets with contracts that are subject to margin requirements C. Regulators forbid hedging assets D. Tax liability can be huge E. None of the above are potential problems with hedging assets 30. What is a liquidity black hole? A. When traders are equally divided between buy and sell B. When the money supply goes negative C. When all traders are on one side of the market D. When there is negative feedback trading E. None of the above 31. Types of market risk for commodities include A. Price risk B. Basis risk C. Cost of carry risk D. Time spread (forward gap) risk E. All of the above 32. Which of the following were a cause of the Savings & Loan crisis of the 1980s? A. Long-term liabilities funding short-term assets B. Prohibitions against savings accounts for Savings and Loans C. Short-term liabilities funding long-term assets D. Excessive regulation of Savings & Loan ownership E. None of the above

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