Which of the Following Has Not Resulted from More Active

question 68

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:

Quantify

To express or measure something in terms of numbers or quantities.

Capital Budgeting

The process by which investors and managers decide which significant investments or projects to undertake, based on potential profitability.

Risk

The potential for loss, damage, or any other negative occurrence that may be avoided through preemptive action.

Probability Distributions

Mathematical functions that describe all the possible values and likelihoods that a random variable can take within a given range.