The Taylor Treadwell Bank Has Just Calculated the Ratio of Its

question 19

Multiple Choice

The Taylor Treadwell Bank has just calculated the ratio of its net loans and leases to total assets.Which liquidity indicator is this?

• A)Cash position indicator
• B)Liquid securities indicator
• C)Net federal funds and repurchase agreement position
• D)Capacity ratio
• E)None of the options is correct

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Definitions:

Preferred Stock

A class of ownership in a corporation that has a higher claim on assets and earnings than common stock and often pays dividends at a fixed rate.

Bondholders

Individuals or entities that hold debt securities issued by governments or corporations, entitling them to receive a fixed or variable interest payments and the return of the principal upon maturity.

Disposable Income

Post-tax financial resources available for household spending and savings.

Savings

The portion of income that is not spent on consumption or taxes, typically put aside for future use or investments.