Typically, a Bank's Largest Asset Is Its

question 41

Multiple Choice

Typically, a bank's largest asset is its

• A)reserves.
• B)holdings of securities.
• C)deposits of its customers.
• D)loans.
• E)the buildings that house its branches.

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Definitions:

Express Authority

An agent’s authority that the principal voluntarily and specifically sets forth as oral or written instructions in an agency agreement.

Apparent Authority

A situation where a reasonable person would understand that an agent had the power to act on behalf of a principal, even if the agent did not have actual authority.

Agency Relationship

A legal and principal relationship between two parties, where one (the agent) is authorized to act on behalf of the other (the principal) in business transactions.

Durable Power Of Attorney

A document that authorizes an agent to act on another’s behalf, with the power either surviving incapacity or becoming effective upon incapacity.