The Goals of Bank Asset Management Include

question 61

Multiple Choice

The goals of bank asset management include

• A)maximizing risk.
• B)minimizing liquidity.
• C)lending at high interest rates regardless of risk.
• D)purchasing securities with high returns and low risk.

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Definitions:

Investing Activities

Transactions involving the purchase or sale of long-term assets and investments which are not related to the entity's primary business operations.

Financing Activities

Activities that result in changes in the size and composition of the equity capital and borrowings of an entity.

Unamortized Discount

The portion of a bond issuance discount that has not yet been expensed to interest over the bond’s life.

Journal Entry

A record in accounting that notes the details of a financial transaction.