1. Lehman Brothers commonly used _________ as collateral when borrowing short-term funds, but its funding was cut off because prospective creditors questioned the quality of the collateral.
a. commercial paper
b. mortgages
c. its stock
d. Treasury securities
2. The Basel III framework proposes:
a. relying on the rating agencies to assess the risk of bank assets.
b. using the gap ratio to set the capital ratio.
c. increased capital requirements and liquidity requirements for banks.
d. lower capital requirements for banks to enable them to generate higher earnings to make up for their losses during the credit crisis.
3. How Does Ford's Performance Differ in Domestic Market vs. Foreign ?