Bankers' Concerns Regarding the Optimal Mix of Excess Reserves,secondary Reserves,borrowings

question 25

Multiple Choice

Bankers' concerns regarding the optimal mix of excess reserves,secondary reserves,borrowings from the Fed,and borrowings from other banks to deal with deposit outflows is an example of

• A)liability management.
• B)liquidity management.
• C)managing interest rate risk.
• D)managing credit risk.

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Definitions:

Mean

The arithmetic average of a set of numbers, calculated by dividing the sum of all values by the number of values.

Mode

An average of a group of values, computed by identifying the number that occurs most often.

Monthly Revenues

The total income generated by a business or entity from its activities within a month.

Bar Graph

Also known as a bar chart, a graphic presentation of statistical information resembling the histogram except that there may not be a numeric scale on the horizontal axis and the bars normally do not touch each other.