Which of the Following Would a Bank NOT Hold as Insurance

question 27

Multiple Choice

Which of the following would a bank NOT hold as insurance against the highest cost of deposit outflow-bank failure?

• A)excess reserves
• B)secondary reserves
• C)bank capital
• D)mortgages

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Definitions:

Power Costs

The expenses associated with the consumption of electricity or other forms of energy used in the production process.

Spending Variance

The difference between the actual amount spent and the budgeted amount for a period, which can be either favorable or unfavorable.

Budgeting

The process of creating a plan to spend your money, outlining how much money will be earned and how it will be spent.

Static Planning Budget

A budget based on a fixed level of activity, not adjusted for actual activity levels.