A Financial Institution Has Estimated That Over the Last Ten

question 111

Multiple Choice

A financial institution has estimated that over the last ten years the deposit withdrawals during Christmas time is about 25% higher than during any other time of the year.This is the _________________________ of estimating future deposits.

• A)trend component
• B)seasonal component
• C)cyclical component
• D)stationary component
• E)None of the options is correct

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Definitions:

Emergency Needs

Financial requirements that arise unexpectedly and require immediate attention, often relating to health, home repairs, or urgent personal matters.

Chattel Mortgage

A loan arrangement in which personal movable property is used as security for the loan, and the lender holds a mortgage over the chattel.

Trust Receipts

Documents that acknowledge the receipt of goods that are held in trust for the lender until the loan associated with the goods is paid.

Blanket Lien

A type of lien that gives the creditor the rights to seize nearly all types of assets and property of the debtor in the event of default.