Which of the Following Is Not an Asset of a Depository

question 13

Multiple Choice

Which of the following is not an asset of a depository institution?

• A) Cash
• B) Bank loans
• C) Securities
• D) Reserves
• E) Savings deposits

---

Definitions:

Spot Rate

The present going rate for a specific currency to be purchased or exchanged, available for prompt delivery.

Hedge

A financial strategy used to reduce the risk of adverse price movements in an asset.

Hedge

An investment position intended to offset potential losses or gains that may be incurred by a companion investment, commonly used for risk management.

Exchange Variations

Refers to the fluctuations in the value of currencies in the foreign exchange market, impacting the value of foreign currency transactions.