If Depositors Move Money from Their Checking Accounts to Short-Term

question 24

Multiple Choice

If depositors move money from their checking accounts to short-term CDs, this would ____ the rate sensitivity of the savings institution's liabilities to interest rate movements.

• A)increase
• B)have no effect on
• C)decrease
• D)increase AND decrease are correct, depending on the size of the savings institution

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Definitions:

Nonverbal Behaviors

Communication actions that do not involve words, such as gestures, facial expressions, and body language.

Résumé Follow-up Message

A communication sent to inquire about the status of a job application after submitting a résumé, aiming to reiterate interest in the position.

Jogging

A form of trotting or running at a slow or leisurely pace as a form of physical exercise.

Serious Interest

A genuine and substantial consideration or enthusiasm towards a specific subject or proposal.