If Stored Liquidity Is Used by a DTI to Fund

question 19

Multiple Choice

If stored liquidity is used by a DTI to fund an exercised loan commitment

• A)the balance sheet will decrease by the amount of the new loan.
• B)only the asset side of the balance sheet will increase.
• C)the balance sheet will increase by the amount of the new loan.
• D)only the liability side of the balance sheet will increase.
• E)there will be no effect on the balance sheet.

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Definitions:

Average Time

The mean period taken for a process or event to occur.

Median Time

Median Time refers to the middle value in a series of time measurements, dividing the data set into two halves.

Quantitative Data

Information that can be measured and represented through numerical values, relating to quantities.

Qualitative Data

Non-numeric data that describes attributes or characteristics, often collected through observations, interviews, or surveys.