By Holding Highly Liquid Assets to Guard Against Sudden Large

question 139

Multiple Choice

By holding highly liquid assets to guard against sudden large withdrawals,banks:

• A)sacrifice safety.
• B)sacrifice profitability.
• C)increase profitability.
• D)diversify their portfolio.
• E)earn more interest than they could on business loans.

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Definitions:

Arbitrator

A neutral third party officially assigned to settle a dispute.

Legally Binding

A term used to describe agreements or contracts that are enforceable by law.

Intellectual Property

Legal rights conferred to the creations of the mind, such as inventions, literary and artistic works, designs, and symbols used in commerce.

Affect-based

Relating to, influenced by, or arising from emotions or feelings rather than rational thought or logic.