Which of the Following Is False

question 30

Multiple Choice

Which of the following is false?

• A)In 2007-2008, banks were experiencing extreme stress due to the financial crisis and downturn in the economy.
• B)The banking industry today is very different from what it was 20 years ago in terms of the number and size of banks.
• C)The interest rate on adjustable (variable) rate loans is adjusted up or down as a bank's cost of funds rises or falls.
• D)Only a small portion of a bank's liabilities are payable on demand.

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Definitions:

Compounded Monthly

A method where interest earnings are calculated and added to the principal sum each month, leading to increased interest in the next period.

Mortgage Loan

A loan secured by real property through the use of a mortgage note.

Savings Account

A financial account at a bank or similar institution that ensures the security of the original sum while yielding a slight return in interest.

Compounded Monthly

Refers to the process where interest is calculated and added to the principal sum each month, leading to interest being earned on interest from prior months.