When Banks Need Funding for Just a Few Days, They

question 32

Multiple Choice

When banks need funding for just a few days, they would most likely

• A)issue bonds and then call them.
• B)issue stock and then repurchase it.
• C)borrow in the federal funds market.
• D)issue NCDs.

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Definitions:

pK Value

A quantitative measure of the strength of an acid in solution, defined as the negative log of the acid dissociation constant (Ka).

Electrophilic Aromatic Substitution

A type of chemical reaction where an aromatic ring undergoes substitution, with an electrophile replacing a hydrogen atom.

Pyridine

A basic nitrogen-containing heterocyclic compound, often used as a solvent and starting material in organic synthesis.

Benzene

A simple aromatic hydrocarbon with the formula C6H6, known for its ring structure of six carbon atoms connected by alternating double and single bonds.