Test Bank for Business and Professional Ethics, 9th Edition by Leonard J. Brooks
23 vues 1 fois vendu
Cours
Business Ethics
Établissement
Business Ethics
Test Bank for Business and Professional Ethics, 9e 9th Edition by Leonard J. Brooks. Complete chapters test bank are included with answers (Chapter 1 to 8)
CHAPTER 1: ETHICS EXPECTATIONS
CHAPTER 2: ETHICS & GOVERNANCE SCANDALS
CHAPTER 3: ETHICAL BEHAVIOR—PHILOSOPHERS’ CONTRIBUTIONS
CHAPTE...
Note: The Chapters in this test bank document are displayed in reverse
order, with the last chapter appearing first. This change ensures all chapters
are included in this document. Feel free to preview first few pages of this
document to verify the document. Thanks for your attention.
,Chap 08_9e
Indicate the answer choice that best completes the statement or answers the question.
1. The 1933 Glass-Steagall Act precluded banks from:
a. practicing subprime lending.
b. selling insurance.
c. underwriting insurance generating more than 10% of total bank income.
d. underwriting securities generating more than 10% of total bank income.
e. underwriting any securities.
2. A fundamental problem with Goldman Sachs’ GSAMP Trust was that:
a. loans were given to people with poor credit histories.
b. homeowners’ equity in the securitized mortgages was less than 1%, on average.
c. loans were given to people with no income.
d. a sizeable portion of the securitized loans had little or no documentation.
e. All of the above
3. Early in 2008, mark-to-market accounting provisions caused the banks to:
a. revalue their portfolio downwards.
b. be in jeopardy of falling below the regulatory capital requirements.
c. restrict new loans.
d. All of the above
e. a and c only
4. These regulators were aware of the problem of “predatory real estate financing” and tried to blow the whistle in
2003.
a. The Security and Exchange Commission and the Federal Reserve Board
b. Iowa and North Carolina state attorneys
c. The Office of the Comptroller of the Currency and the Office of Thrift Supervision
d. Federal banking regulators
e. None of the above
5. In simple terms, the securitization process is:
a. a way to sell structured investment vehicles (SIVs).
b. a way for mortgage lenders to sell accounts receivable to public investors.
c. a way to create high-yield investments with little risk.
d. All of the above
e. a and c only
Page 1
,Name: Class: Date:
Chap 08_9e
6. These entities worked as second-party consolidators by purchasing loans and reselling them to investors.
a. The Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage
Corporation (Freddie Mac)
b. Structured investment vehicles (SIVs)
c. Credit rating agencies
d. Investment banks
e. All of the above
7. Goldman Sachs’ GSAMP Trust was able to create AAA-rated securities by:
a. separating the mortgage portfolio into tranches and assigning the tranches to share risks of default equally.
b. not disclosing the risks clearly.
c. guaranteeing or protecting some tranches.
d. separating the mortgage portfolio into tranches and assigning the A-1, A-2, and A-3 tranches last in order,
after the M-1 to M-7 and B-1 to B-3 tranches, to suffer losses if a default occurred.
e. All of the above
8. Rating agencies were exposed to a conflict of interest because:
a. credit rating agencies were rating securities and investing in those securities.
b. credit rating agencies used ratings to sell securities.
c. the clients of credit rating agencies used ratings to sell securities.
d. investors did not want rating downgrades.
e. credit rating agencies were paid by the firms who created the securities being rated.
9. In simple terms, a mortgage-backed security is:
a. a portfolio of mortgages sold to investors through publicly issued bonds.
b. a contract that transfers the ownership of a lender’s mortgages receivable.
c. a contract that transfers the risk of noncollection from mortgage originators to other investors.
d. All of the above
e. a and c only
10. The movie The Big Short is the story of a few clever investors who realized that security markets were about to
crash, and they:
a. invested in CDOs.
b. invested in CDSs.
c. invested in NCDSs.
d. sold stocks short.
e. bought gold.
Page 2
, Name: Class: Date:
Chap 08_9e
11. Late in 2008, the International Accounting Standards Board allowed firms to:
a. reclassify devaluated financial assets, delaying the recognition of losses.
b. estimate the value of the portfolio if there was no ready market for a derivative portfolio.
c. reduce their capital requirements.
d. accelerate the recognition of losses through mark-to-market accounting.
e. None of the above
12. Which of the following is not an example of aggressive lending practices that contributed to the subprime crisis?
a. Mortgagors were not required to make any down payment at the inception of the loan.
b. Loans were given to people with poor credit histories.
c. Loans were given to people with no income.
d. A borrower could get a second mortgage and use it as down payment.
e. None of the above
13. According to former Federal Reserve chairman Alan Greenspan, the Fed became concerned about subprime
lending in 2000; however:
a. the global demand for mortgage-backed security ended in 2005.
b. the quality of mortgage products began to deteriorate in 2005.
c. the global demand for mortgage-backed security started in 2003.
d. the quality of mortgage products began to deteriorate in 2003.
e. the global demand for mortgage-backed security ended in 2008.
14. Mortgage-backed securities lost their value when:
a. the underlying assets lost their value.
b. borrowers (the mortgagees) walked away without a real obligation to repay.
c. mortgage originators went bankrupt.
d. a and b
e. b and c
15. Investors relied on the judgment of credit rating agencies because:
a. credit rating agencies were supposed to be experts in evaluating credit risk.
b. the information directly available to investors on mortgage pools was insufficient
c. credit rating agencies were supposed to do their due diligence and do a thorough review before rating a
given security.
d. All of the above
e. a and c
16. Some observers claim that the U.S. Federal Reserve Board encouraged the housing and credit bubbles by:
a. not regulating subprime mortgages.
b. cutting interest rates.
c. enforcing mark-to-market accounting.
d. a and b
e. a and c
Page 3
Les avantages d'acheter des résumés chez Stuvia:
Qualité garantie par les avis des clients
Les clients de Stuvia ont évalués plus de 700 000 résumés. C'est comme ça que vous savez que vous achetez les meilleurs documents.
L’achat facile et rapide
Vous pouvez payer rapidement avec iDeal, carte de crédit ou Stuvia-crédit pour les résumés. Il n'y a pas d'adhésion nécessaire.
Focus sur l’essentiel
Vos camarades écrivent eux-mêmes les notes d’étude, c’est pourquoi les documents sont toujours fiables et à jour. Cela garantit que vous arrivez rapidement au coeur du matériel.
Foire aux questions
Qu'est-ce que j'obtiens en achetant ce document ?
Vous obtenez un PDF, disponible immédiatement après votre achat. Le document acheté est accessible à tout moment, n'importe où et indéfiniment via votre profil.
Garantie de remboursement : comment ça marche ?
Notre garantie de satisfaction garantit que vous trouverez toujours un document d'étude qui vous convient. Vous remplissez un formulaire et notre équipe du service client s'occupe du reste.
Auprès de qui est-ce que j'achète ce résumé ?
Stuvia est une place de marché. Alors, vous n'achetez donc pas ce document chez nous, mais auprès du vendeur StepsSol. Stuvia facilite les paiements au vendeur.
Est-ce que j'aurai un abonnement?
Non, vous n'achetez ce résumé que pour €28,56. Vous n'êtes lié à rien après votre achat.
