Which of the Following Are Primary Concerns of the Bank

question 50

Multiple Choice

Which of the following are primary concerns of the bank manager?

• A) Maintaining sufficient reserves to minimize the cost to the bank of deposit outflows
• B) Extending loans to borrowers who will pay low interest rates, but who are poor credit risks
• C) Acquiring funds at a relatively high cost, so that profitable lending opportunities can be realized
• D) Maintaining high levels of capital and thus maximizing the returns to the owners.

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Definitions:

Qualified Indorser

An individual or entity that endorses a negotiable instrument, adding conditions or limitations to the endorsement.

Unqualified Indorser

A term likely meant to refer to an unqualified endorsement, where an endorser does not limit their liability on a negotiable instrument.

Liability

The state of being legally responsible for something, especially in terms of debts or legal obligations.

Forging

The illegal act of creating, altering, or imitating objects, documents, or signatures with the intent to deceive.