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The Willis Savings Bank Is Comparing the Prevailing Interest Rate

question 71

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The Willis Savings Bank is comparing the prevailing interest rate in the Fed Funds market with that of the negotiable CD market.It is making sure to include the noninterest costs,the deposit insurance costs,and the amount of money that will actually be available for new loans.Which factor that affects a bank's use of nondeposit sources of funds is the bank examining?


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