The Taylor Treadwell Bank Has Just Calculated the Ratio of Its

question 68

Multiple Choice

The Taylor Treadwell Bank has just calculated the ratio of its demand deposits to total time deposits.Which liquidity indicator is this?

• A)Deposit composition ratio
• 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:

Deferred Annuity

A financial product offered by insurance companies that postpones the disbursement of income, periodic payments, or a single large payment until chosen by the investor.

Ordinary Annuity

An investment product that pays out fixed payments to an individual at regular intervals for a specified period of time, typically used for retirement savings.

Deferred Annuity

A type of annuity contract that delays payments of income, installments, or a lump sum until the investor elects to receive them.

Ordinary Annuity

Consistent payouts distributed at the conclusion of each cycle over an established length.