Which of the Following Statements Is False

question 44

Multiple Choice

Which of the following statements is false?

• A) A bank's assets are its uses of funds.
• B) A bank issues liabilities to acquire funds.
• C) The bank's assets provide the bank with income.
• D) Bank capital is recorded as an asset on the bank balance sheet.

---

Definitions:

Skimming Strategy

A pricing tactic that involves setting a high price for a new product to maximize profits from segments willing to pay more, before lowering the price over time.

Price Insensitivity

A condition where the demand for a product is unresponsive or less sensitive to changes in its price.

Product Sampling

A promotional tactic where customers are given a sample of a product for free with the goal of increasing awareness or boosting sales.

Initial Purchase

The first time a customer buys a product or service from a business, marking the beginning of the consumer-brand relationship.