A Bank's Largest Liability Is Its

question 182

Multiple Choice

A bank's largest liability is its

• A)short-term borrowing.
• B)long-term debt.
• C)deposits of its customers.
• D)shareholder equity.

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Definitions:

Credit Terms

The conditions under which credit will be extended to a customer, including the repayment period, interest rate, and any discounts for early payment.

Gross Margin Ratio

A financial metric expressing the percentage of revenue that exceeds the cost of goods sold, used to assess a company's financial health.

Net Sales

The total revenue from sales of products or services less returns, allowances, and discounts.

Cost of Goods Sold

The direct expenses related to producing goods sold by a company, including material costs and direct labor, essential for calculating a company's gross profit.