In a Crisis, Which of the Following Are Relatively Less

question 53

Multiple Choice

In a crisis, which of the following are relatively less likely to withdraw funds quickly from banks and savings institutions?

• A)Correspondent banks.
• B)Small business corporations.
• C)Individual depositors.
• D)Mutual funds.
• E)Pension funds.

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Definitions:

Fair Value

An estimate of the market value of an asset or liability, based on the price at which willing parties would enter into a transaction.

Adjusting Entry

A journal entry made at the end of an accounting period to allocate income and expenditure to the appropriate periods.

Debt Investments

Investments in bonds or other debt securities where the investor lends money to an entity in exchange for interest payments and the return of principal.

Accrued Annual Interest

Interest that has been incurred but not yet paid over a year, representing a liability for the borrower.