When a Bank Issues a Checkable Deposit and Loans the Funds

question 44

Multiple Choice

When a bank issues a checkable deposit and loans the funds out to a business, it has transformed

• A)a financial asset for a saver into a liability for a borrower.
• B)a financial liability for a saver into a financial asset for a borrower.
• C)a short-term liability to a borrower into a long-term asset to a saver.
• D)one liability into another liability.

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Definitions:

Management Inventories

Tools or systems used to assess and catalog the abilities, skills, and potential of managerial staff within an organization.

Markov Models

A statistical model used to predict a system's future behavior based on its current state, often used in decision making and predicting behavior patterns over time.

Trend Analysis

The process of gathering data and seeking to identify a pattern or trend within the data.

Skills Gap

The difference between the skills required for a job and the actual skills possessed by employees.