In the Balance Sheets of Australian Banks

question 47

Multiple Choice

In the balance sheets of Australian banks:

• A) there was a significant decline in the percentage of current deposits in the total.
• B) there has been an increase in the percentage of assets held in cash and liquid assets by banks because of continuing reductions in, and the ultimate removal of, required reserve ratios and the reduced need for liquidity as a result of the increased feasibility of asset/liability management.
• C) there has been a decrease in the proportion of term deposits, arising largely from the normal (upward- sloping) yield curve in Australia.
• D) certificates of deposit have declined in importance.

---

Definitions:

Brick-and-mortar

Refers to a traditional business that operates in a physical store or building rather than online.

Purely Physical

Pertaining exclusively to the material or tangible aspects of something, devoid of any digital, virtual, or intangible components.

Freemium

A business model where basic services are provided free of charge while more advanced features must be paid for.

Subscription

An arrangement to receive products or services, such as publications or software, on a regular basis by paying a fee.