Pooling Risk

Multiple Choice

Pooling risk

A) refers to the lower cost of obtaining funds from a depository institution.
B) is now illegal under the Nuisance Act of 2014.
C) occurs when one person lends to an entire group or pool of borrowers.
D) refers to a default contract made by a bank to other banks.
E) refers to spreading the risk of loan default among all the depositors within the depository institution.