Banks Can Satisfy Their Short-Term Borrowing Needs by

question 27

Multiple Choice

Banks can satisfy their short-term borrowing needs by

• A)Federal Funds purchased.
• B)Federal Funds sold.
• C)Issuing negotiable CDs.
• D)Both a and c

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Definitions:

Preferred Dividends

Dividends that are paid to preferred shareholders at a set rate before any dividends are paid to common shareholders.

Net Income

represents a company's total profit after all expenses, taxes, and costs have been subtracted from total revenue.

Diluted Earnings Per Share

A calculation of a company's earnings per share adjusted for the impact of all potential dilutive securities, which could decrease earnings per share.

Basic Earnings Per Share

A measure of a company's profitability on a per-share basis, calculated by dividing net income by the average number of shares outstanding.