Which of the Following Statements Is False

question 44

Multiple Choice

Which of the following statements is false?

• A) Chequable deposits are usually the lowest cost source of bank funds.
• B) Demand deposits are the primary source of bank funds.
• C) Chequable deposits are payable on demand.
• D) Chequable deposits include notice deposits.

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Definitions:

Herfindahl Index

A measure of market concentration used to determine the level of competition within an industry, calculated by summing the squares of the market shares of all firms in the industry.

Market Power

The ability of a firm or group of firms to influence or control the prices and total output in a market, often due to limited competition or holding a dominant position.

Price Competition

A market situation where businesses attempt to outdo competitors by offering goods or services at lower prices.

Product Differentiation

The method of differentiating a product or service from competitors, aiming to make it more appealing to a specific target audience.