Which of the Following Balance Sheet Entries Is Not Sensitive

question 16

Multiple Choice

Which of the following balance sheet entries is not sensitive to changes in market interest rates?

• A) bonds
• B) reserves
• C) mortgages
• D) borrowings

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Definitions:

Instrument

Any writing that serves as evidence of the right to payment of money.

Writing

The representation of language in a textual medium through the use of a set of signs or symbols.

After-Acquired Property

Property not owned by a debtor at the time of a security agreement but acquired later and subsequently becomes subject to the security interest.

Security Interest

A security interest is a legal right granted by a debtor to a creditor over the debtor's property, ensuring the property may be used as collateral for the repayment of a debt.