1. Having the bank purchase the asset and then lease it to the customer is most often beneficial when the customer is

A) in a higher tax bracket than the bank

B) in the same tax bracket as the bank

C) in a lower tax bracket than the bank

D) a better credit risk than the bank.

E) a poorer credit risk than the bank.

2. A bank's PLL is

A) the difference between interest income and interest expense.

B) the difference between noninterest income and noninterest expense.

C) a loss reserve charge to earnings for loans that may not be collectible.

D) a contra asset account used to protect equity if loans are written off.