Which One of the Following Aspects of Banks Is Considered

question 31

Multiple Choice

Which one of the following aspects of banks is considered most relevant to businesses when choosing a bank?

• A) Convenience of location.
• B) Competitive cost of services provided.
• C) Size of the bank's deposits.
• D) Experience of personnel.
• E) Loyalty and willingness to assume lending risks

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Definitions:

Face Amount

The total amount of money that will be paid at maturity by a financial instrument such as a bond or life insurance policy.

Unamortized Premium

The portion of the premium paid over the par value of a bond that has not yet been expensed in the company's financial statements.

Carrying Amount

The book value of assets and liabilities on a company's balance sheet, calculated as the original cost minus any depreciation, amortization, or impairment costs.

Interest-Bearing Note

A debt instrument that specifies the amount borrowed, interest rate, and maturity date, obligating the borrower to pay interest.