The Size of a Financial Institution Has an Effect on the Type

question 70

True/False

The size of a financial institution has an effect on the type of nondeposit funding source it considers.For example,larger depository institutions have the credit standing to sell the largest negotiable CDs,while the Fed funds market is suitable for smaller institutions.

---

Definitions:

Depreciable Cost

The cost of a plant asset less its salvage value.

Remaining Useful Life

The expected period that an asset is anticipated to be functional and economically viable for use in operations.

Book Value

The value of a company's asset as it appears on the balance sheet, calculated by subtracting the asset's accumulated depreciation from its cost.

Fair Market Value

The price at which an asset would sell in the market under conditions of fair competition and sufficient information.