Which of the Below Statements Is FALSE

question 48

Multiple Choice

Which of the below statements is FALSE?

• A) The nature of the liabilities dictates the investment strategy a financial institution will pursue.
• B) The objective of a depository institution is to earn a positive spread between the assets it invests in (what it has sold the money for) and the costs of its funds (what it has purchased the money for).
• C) Life insurance companies and, to a certain extent, property and casualty insurance companies are in the spread business.
• D) Pension funds are in the spread business in that they do not raise funds themselves in the market.

Recognize the need for and preparation of adjusting entries for accrued expenses, prepaid expenses, and contingencies.

Comprehend the process of purchasing an asset with deferred payments including interest and its impact on the balance of debt principal over time.

Understand how changes in current asset and current liability accounts impact cash flow.

Recognize the significance of present value concepts in financing transactions and equipment purchases.

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Definitions:

English-As-A-Second-Language

Educational programs or instructions specifically designed for learners whose primary language is not English, aiming to improve their proficiency in English.

A Hedge

A protective barrier consisting of closely planted bushes or shrubs; metaphorically, a means to minimize risk or shield against losses.

A Disclaimer

A statement that denies something, especially responsibility, or sets forth a limitation to avoid legal or other potential liabilities.

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The small vocal and visual comments a listener makes while a speaker is talking, without taking over the speaking turn. This includes responses such as “Yeah,” “Huh?” “M-hmn,” head nods, brief smiles, and completions of the speaker’s words. Back-channel feedback is crucial to coordinate conversation smoothly.