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NEW QUESTION: 1
Suppose that a regulator deems all corporate debt to have the same risk level. Which of the following behavior of banks would be an example of regulatory arbitrage?
A. Banks shift their exposure to less risky corporate debt.
B. Banks shift their exposure to more risky corporate debt.
C. Banks decrease their exposure to corporate debt.
D. Banks increase their exposure to corporate debt.
Answer: B

NEW QUESTION: 2
A 3-month (91-day) UK Treasury bill with a face value of GBP 50,000,000.00 is quoted at a yield of 4.25%. How much is the bill worth?
A. GBP 49,462,847.22
B. GBP 47,875,000.00
C. GBP 49,475,760.27
D. GBP 49,470,205.48
Answer: C


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