Which of the Following Has Not Resulted from More Active

question 68

Multiple Choice

Which of the following has not resulted from more active liability management on the part of banks?

• A) Increased bank holdings of cash items
• B) Aggressive targeting of goals for asset growth by banks
• C) Increased use of negotiable CDs to raise funds
• D) An increased proportion of bank assets held in loans

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Definitions:

Loss Aversion

A cognitive bias where individuals fear losses more than they value equivalent gains.

Company Retirement

Often related to the benefits or pension schemes planned for employees after they retire from a company, differing from mandatory retirement policies.

Savings Programs

Financial plans or accounts that encourage saving by offering interest or other benefits.

Neoclassical Models

Economic models based on the principles of neoclassical economics that emphasize rational behavior, supply and demand equilibrium, and the efficiency of markets.