Banks Typically Have Short-Term Investment Horizons Because

question 9

Multiple Choice

Banks typically have short-term investment horizons because

• A) They have a strong need for liquidity.
• B) They offer short-term deposit accounts.
• C) They are required to by federal and state laws.
• D) Choices a and b
• E) All of the above

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Definitions:

Assets

Resources with economic value that an individual, corporation, or country owns or controls with the expectation that it will provide future benefit.

Subsidiary Corporation

A corporation wholly owned by another corporation (the parent corporation).

Shares

Units of ownership interest in a corporation or financial asset that provide for an equal distribution in any profits, if any are declared, in the form of dividends.

Consolidation

The process of combining assets, liabilities, and other financial items of two or more entities into one.