Which of the Following Is a Factor That Affects a Bank's

question 103

Multiple Choice

Which of the following is a factor that affects a bank's decision as to which nondeposit sources of funds to use to cover its projected funds gap?

• A)The relative cost of raising the funds.
• B)The length of time the funds will be required.
• C)The risk associated with each source of funds.
• D)The size of the bank.
• E)All of the options are correct.

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Definitions:

Common Shares

Equity securities that represent ownership in a corporation, giving holders voting rights and a share in the company's profits via dividends.

Acquisition

The process of acquiring control of a company by purchasing its shares or assets, effectively resulting in a change of ownership.

Restricted Shares

types of stock which are subject to certain restrictions, typically related to the vesting period, and are not fully transferrable until certain conditions are met.

Participation in Earnings

A method where stakeholders, usually employees or managers, receive a share of the company's profits, typically based on predetermined criteria.