If Depositors Move Money from Their Checking Accounts to Short-Term

question 65

Multiple Choice

If depositors move money from their checking accounts to short-term CDs, this would ____ the rate sensitivity of the savings institution's liabilities to interest rate movements.

• A) increase
• B) have no effect on
• C) decrease
• D) A or C, depending on the size of the savings institution

---

Definitions:

Social Relations

Interactions between individuals and groups, including how they communicate, influence, and relate to each other.

Obsession

Persistent and intrusive thoughts, impulses, or images that cause significant anxiety or distress.

Compulsion

An intense, often overwhelming urge to carry out an action, particularly one that is illogical or against one's own desires.

Hallucination

A perception of having seen, heard, touched, tasted, or smelled something that isn't actually present, often occurring without an external stimulus.