Which of the Following Is a Condition for a DI

question 81

Multiple Choice

Which of the following is a condition for a DI to be growing?

• A)Net positive drain on deposits.
• B)Peak of the net deposit drain probability distribution should lie at a point to the right of zero.
• C)Average deposit drains such that new deposit funds more than offset deposit withdrawals.
• D)The liability side of its balance sheet is decreasing.
• E)Unused loan commitments is increasing.

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Definitions:

Share of the Profit

The portion of a company's earnings allocated to each outstanding share of common stock, illustrating the company's profitability on a per share basis.

Average Capital Balances

An average of the various amounts of capital held in an account over a specific period, often used to calculate interest or allocate profits and losses in partnerships.

Interest Allowance Method

A method used in accounting to allocate interest expense over the life of a debt at a constant rate.

Original Investment

The initial amount of money spent to acquire an asset or start a business venture, not including subsequent expenses.