The Sensitivity of the Cost of Funds to Interest Rate

question 11

Multiple Choice

The sensitivity of the cost of funds to interest rate movements has generally been

• A)greater for credit unions than for savings institutions.
• B)greater for credit unions than for commercial banks.
• C)lower for credit unions than for savings institutions or commercial banks.
• D)similar for credit unions as for savings institutions and commercial banks.

---

Definitions:

Just-In-Time (JIT)

A production strategy that strives to improve a business's return on investment by reducing in-process inventory and associated carrying costs.

Manufacturing Firms

Entities engaged in the industrial production of goods, transforming raw materials into finished products for distribution.

Demand-Pull

A production strategy where production is based on customer demand, pulling products through the manufacturing process to meet specific orders.

Downstream Workstations

Downstream workstations are the subsequent stages or positions in a workflow or production line where additional processing or assembly takes place, following upstream operations.