Which of the following is true of the Dodd-Frank legislation?
A) Federal Deposit Insurance Corporation-insured institutions are required to keep their interests in hedge funds and private equity funds.
B) Investment banks have to set aside reserves to cover all forms of expenditure.
C) Originators of mortgage securities must hold 5 percent of the credit risk, thus retaining an interest in the performance of the securities.
D) Banks will be allowed to trade in a proprietary manner but cannot continue to buy or sell from their own accounts to hedge against other investments.
C
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Offshoring typically lowers labor, working capital and fixed costs but increases risk and freight costs
Indicate whether the statement is true or false.
The compensating control for the loss of segregation of duties in an electronic input system is
A) supervision and review. B) input document control forms. C) prenumbered documents. D) transaction logs.