The Willis Savings Bank Is Comparing the Prevailing Interest Rate

question 71

Multiple Choice

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?

• 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)Regulations

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Definitions:

Prospect

A potential customer or client who has been identified as fitting the target market's criteria and is likely to be receptive to the product or service offered.

Mental Steps

The cognitive stages or processes involved in understanding, reasoning, or problem-solving.

Purchasing Decision

The process through which a consumer or business selects a product or service to buy, often influenced by marketing, needs, and budget.

Correct Order

An arrangement or sequence of activities or processes in the right or most effective sequence.