Whether a Bank Has a Temporary or a Permanent Need

question 55

True/False

Whether a bank has a temporary or a permanent need for funds, the decision should be to borrow in the federal funds market.

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Definitions:

Performance Measures

Quantitative indicators used to assess how well an organization or individual is achieving its goals and objectives.

Gross Cost

The total cost incurred before deducting any discounts, allowances, or rebates.

Operating Assets

Assets that are used for the day-to-day functioning of a business, excluding investment and non-operational assets.

Return On Investment

A performance measure used to evaluate the efficiency or profitability of an investment, calculated by dividing the profit from an investment by the cost of the investment.