Obtaining Funds Through ____ Is Not a Common Way for Banks

question 2

Multiple Choice

Obtaining funds through ____ is not a common way for banks to satisfy a temporary deficiency of funds.

• A)issuing bonds
• B)the federal funds market
• C)repurchase agreements
• D)borrowing from the Federal Reserve

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Definitions:

Earnings per Share

This refers to the portion of a company's profit allocated to each outstanding share of common stock, serving as an indicator of the company's profitability.

Liquidity

The ability of an asset to be quickly converted into cash without significant loss in value, essential for assessing the financial health of businesses.

Accounts Receivable Turnover

A financial ratio indicating how many times a company's receivables are turned into cash over a period.

Price-Earnings Ratio

A valuation metric that compares a company's share price to its earnings per share, used to gauge if a stock is over or under-valued.