Banks Do Not Hold a Lot of Their Assets in the Form

question 96

Multiple Choice

Banks do not hold a lot of their assets in the form of cash mainly because of:

• A) regulation.
• B) the fear of being robbed.
• C) the opportunity cost of holding cash; cash does not earn interest.
• D) it can encourage employee theft.

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Definitions:

Comparative Reasoning

The process of making judgments or decisions based on the comparison between alternatives.

Universal Gravity

A fundamental force of nature described by Newton's law, which states that every mass exerts an attractive force on every other mass.

Comparative Inference

A method of reasoning and drawing conclusions based on the comparison between different cases, data sets, or scenarios.

Familiarity

Close acquaintance with or knowledge of something.