Modern Liability Management Has Resulted in

question 109

Multiple Choice

Modern liability management has resulted in

• A) increased sales of certificates of deposits to raise funds.
• B) increase importance of deposits as a source of funds.
• C) reduced borrowing by banks in the overnight loan market.
• D) failure by banks to coordinate management of assets and liabilities.

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Definitions:

Fixed Manufacturing Overhead

The consistent, non-variable costs associated with manufacturing, regardless of the production volume.

Direct Materials

Raw materials that are directly used in the production of goods and can be easily traced to the product.

Direct Labour

The workforce directly involved in manufacturing goods or providing services, where their labor can be directly tied to end products.

Variable Manufacturing Overhead

Costs in the production process that vary with the level of output, such as utilities for the machinery.