Which of the Following Reasons Is the Primary Motivator for a Bank

question 73

Multiple Choice

Which of the following reasons is the primary motivator for a bank to acquire new depositors?

• A) A new deposit account will make more funds available to pay the interest on other deposit accounts.
• B) A new deposit account will make more funds available to pay the bank's employees.
• C) A new deposit account will make more funds available to give out in loans.
• D) A new deposit account will make more funds available to give out in dividends to its investors.
• E) A new deposit account will make more funds available to facilitate brokerage transactions.

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Definitions:

Exchange Transactions

Transactions in which each party to the deal exchanges goods or services of comparable value; this can include trade of goods, services, or financial assets.

Tangible Assets

Physical assets that can be touched or felt, such as machinery, buildings, and land.

Cost Method

An accounting method used to value investments, where the investment is recorded on the balance sheet at its purchase cost.

IFRS

International Financial Reporting Standards, which are a set of accounting standards developed by the IASB that provide a global framework for preparing financial statements.