Which of the following statements regarding liability management is accurate? A. As a liability management strategy,...

Which of the following statements regarding liability management is accurate? A. As a liability management strategy, reliance on customers deposits allows the bank's loan portfolio to grow faster than relying on borrowed funds. B. As a liability management strategy, reliance on borrowed funds allows a bank's loan portfolio to grow faster than relying on customers deposits . C. Customers deposits are more stable as a source funds for a bank than borrowed funds D. B and C.

Need fast

Solutions

Expert Solution

Customer deposits are more stable as source fund for banks than borrowed fund because consumer deposits are various types having prescribed term and they are always providing the bank with better management of their liquidity. These are also known as core deposits.

All the other options are false.

Correct answer will be option (C )customers deposits are more stable as a source fund for bank than borrowed fund

jeff jeffy answered 1 year ago

Next > < Previous

Related Solutions

Which of the following statements is the most accurate description of limited liability? A. In a...

Which of the following statements is the most accurate description of limited liability? A. In a company limited by shares, shareholder who holds a share in the company is not liable beyond any amount outstanding on partly paid shares. B. In a company limited by shares, a company has limited liability for their debts. C. A company is a separate legal entity from its directors, so directors are always shielded from the company's losses. D. A and B above. E....

QUESTION 14 Which of the following statements is the most accurate description of limited liability? A....

QUESTION 14 Which of the following statements is the most accurate description of limited liability? A. In a company limited by shares, shareholder who holds a share in the company is not liable beyond any amount outstanding on partly paid shares. B. In a company limited by shares, a company has limited liability for their debts. C. A company is a separate legal entity from its directors, so directors are always shielded from the company's losses. D. A and B...

Which of the following statements regarding the capitalization of interest expense is least accurate? The capitalization...

Which of the following statements regarding the capitalization of interest expense is least accurate? The capitalization of interest expense will result in higher: Group of answer choices A)operating cash flow. b) leverage ratios. C) interest coverage ratio.

Which of the following statements regarding documents versus eyewitnesses is NOT accurate? a. When faced with...

Which of the following statements regarding documents versus eyewitnesses is NOT accurate? a. When faced with a choice between an eyewitness and a good document as evidence, most fraud experts choose the witness. b. Unlike eyewitnesses, documents are almost always available to the fraud investigator who knows where to find them. c. In today's interconnected financial world, it is nearly impossible to transfer money without creating a document trail. d. Unlike witnesses, documents never tell inconsistent stories on two different...

Under ASC Topic 606 for revenue recognition, which of the following statements is not accurate regarding...

Under ASC Topic 606 for revenue recognition, which of the following statements is not accurate regarding performance obligations? Multiple Choice Firms must disclose qualitative information about their performance obligations. Firms must disclose the aggregate amount of the transaction price allocated to unsatisfied performance obligations. Firms must disclose warranties provided. Firms are not required to disclose any judgments used to apply the standard.

Which of the following statements is most accurate regarding sufficient and appropriate documentation? Audit documentation is...

Which of the following statements is most accurate regarding sufficient and appropriate documentation? Audit documentation is the property of the client, and sufficient and appropriate copies should be retained by the auditor for at least 5 years. Sufficient and appropriate documentation should include evidence that it has been reviewed. Accounting estimates are not considered sufficient and appropriate documentation. If additional evidence is required to document significant findings or issues, the original evidence is not considered sufficient and appropriate and therefore...

Which of the following statements is the least accurate?

Which of the following statements is the least accurate?a.Common types of contingent claim derivatives include options and modified versions of swaps, forward contracts and futures contracts.b.An option that gives the right to buy is referred to as a put; an option that gives the right to sell is referred to as a call.c.Asset-backed securities are examples of contingent claims.

Which of the following is false regarding Phase 2, Moderate Development, of supply management strategy evolution?...

Which of the following is false regarding Phase 2, Moderate Development, of supply management strategy evolution? Group of answer choices Purchasers now begin to pursue strategic supplier relationships that focus on customer needs and the organization's competitive strategy. Suppliers are viewed as a resource. There may be some informal channels of functional integration developed internally. Buyers adopt a systems thinking perspective that encompasses the entire supply chain. Single sourcing with long term agreements eventually emerge as a policy for leveraged...

Which of the following statements about leadership is the most accurate?

Which of the following statements about leadership is the most accurate?A One trait of effective leaders is that they consistently maintain the same style of leadership.B Effective leaders use money as a prime motivator to change employee performance.C The most effective leaders build trust and reward outstanding performance.D The democratic style of leadership will almost always improve the effectiveness of the organization

Regarding the differences between financial accounting and management accounting, which of the following statements is false?...

Regarding the differences between financial accounting and management accounting, which of the following statements is false? Select one: a. management accounting is less constrained than financial accounting b. the distinction between the two areas, to some extent, reflects differences in access to financial information c. there is no overlap between management accounting and financial accounting d. managers have much more control over the form and content of their reports

Subjects