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1. 8. A company is working out of Vienna with operations in New York simultaneously calls Citibank in New York City and Barclays in London. The banks give the following quotes on the euro simultaneously. (3 marks) Citibank NYC Barclays London $1.2828–297€ $1.2824-25/€ Using $2 million or its euro equivalent, determine whether the corporate treasury could make geographic arbitrage profit with the two different exchange rate quotes.

2. The provision for loan and lease losses: A. is another name for a bank's burden. B. are the realized losses from the previous accounting period. Crepresents management's estimate of potential lost revenue from bad loans. D.does not affect net income. E determined by the Federal Reserve for all banks.