Characteristics of good collateral include: A)...

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Finance

Characteristics of good collateral include:

A) durability
B) indentification
C) marketability
D) stability of value
E) all of the above
F) none of the above

Adverse selection in lending means that ___________ borrowers are willing to pay the average rate of interest, while __________ borrowers are not. The result is that banks wind up with _________ risk borrowers.

A) low-risk; high-risk; lower-than average
B) high-risk; low-risk; lower-than-average
C) low-risk; high-risk; higher-than average
D) high-risk; low-risk; higher-than average

Which of the following are broad types of funding banks use?

A) property, plant, and equipment
B) home equity loans
C) long-term funding
D) all of the above

Which of the following are purchased funds?

A) Business checking accounts
B) Individual checking accounts
C) Savings accounts
D) all of the above
E) none of the above

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