The Harmony Bank of the South Has Just Increased Its

question 45

Multiple Choice

The Harmony Bank of the South has just increased its Federal Funds Purchases.What source of liquidity does this represent to the bank?

• A)Incoming customer deposit
• B)Revenues from the sale of nondeposit services
• C)Customer loan repayment
• D)Sale of an asset
• E)Borrowings from the money market

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Definitions:

Non-value-adding Activities

Tasks or processes that do not add value to the final product or service from the customer's perspective.

Cost Driver Analysis

The examination of factors that influence the cost of a product or service, aimed at finding ways to improve efficiency and reduce expenses.

Root Cause

The fundamental reason for the occurrence of a problem, which when resolved, prevents a recurrence of that problem.

Cost Drivers

Factors that cause a change in the cost of an activity, including production volume, labor hours, and machine hours.