Which of the Following Are Primary Concerns of the Bank

question 147

Multiple Choice

Which of the following are primary concerns of the bank manager?

• A)maintaining sufficient reserves to minimize the cost to the bank of deposit outflows
• B)extending loans to borrowers who will pay low interest rates,but who are poor credit risks
• C)acquiring funds at a relatively high cost,so that profitable lending opportunities can be realized
• D)maintaining high levels of capital and thus maximizing the returns to the owners

---

Definitions:

Standard Deviation

An indicator of the extent of variability or spread among a collection of numbers, showing the degree to which these numbers differ from their average.

Significance Level

Significance level, often denoted by alpha, is the probability of rejecting the null hypothesis when it is true, serving as a threshold for determining statistical significance.

Power of a Test

The probability that a statistical test will correctly reject a false null hypothesis; a measure of a test's ability to detect an effect when there is one.

Null Hypothesis

A statement used in statistics that proposes there is no significant difference or effect, and any observed difference is due to sampling or experimental error.