Which of the Following Has NOT Resulted from More Active

question 144

Multiple Choice

Which of the following has NOT resulted from more active liability management on the part of banks?

• A)increased bank holdings of cash items
• B)aggressive targeting of goals for asset growth by banks
• C)increased use of negotiable CDs to raise funds
• D)an increased proportion of bank assets held in loans

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Definitions:

Reserve Requirement

The minimum amount of reserves that a bank must hold against its deposits, as mandated by central banking authorities to ensure liquidity.

Discount Rate

The rate of interest applied to loans given to commercial banks and other financial institutions by their local Federal Reserve Bank's credit facility.

Reserves

refers to funds or materials set aside or saved for future use or emergencies, often in the context of banking or natural resources.

Checkable Deposits

Bank account balances that can be accessed using checks, debit cards, or electronic means to make payments directly.