Which of the Following Is the Role Performed by Accommodating

question 64

Multiple Choice

Which of the following is the role performed by accommodating banks?

• A)They act as intermediaries in the Eurodollar market.
• B)They issue negotiable CDs for themselves and for other banks.
• C)They sell commercial paper to raise funds for themselves and other firms belonging to their bank holding company.
• D)They buy and sell federal funds simultaneously in order to make a market for reserves of customer banks.
• E)None of the options is correct.

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Definitions:

Book Value

The net value of a company's assets minus its liabilities, often used to assess its equity value.

Intangible Asset

An asset that is not physical in nature, such as patents, copyrights, trademarks, and goodwill.

Depreciation Expense

An accounting method of allocating the cost of a tangible asset over its useful life to represent how much of the asset's value has been used.

Estimated Useful Life

The expected period over which an asset is anticipated to be used by a business.