Which of the Following Asset Classes Is Considered as the Riskiest

question 70

Multiple Choice

Which of the following asset classes is considered as the riskiest for a bank?

• A)Corporate bonds
• B)Equities
• C)Real-estate
• D)Loans
• E)Municipal bonds

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Definitions:

Materials Account

An account used in bookkeeping to track costs of raw materials during an accounting period.

FIFO Method

The FIFO (First-In, First-Out) method is an inventory valuation strategy where the oldest inventory items are sold or used first.

Weighted Average Method

The weighted average method is an inventory costing approach that calculates the cost of goods sold and ending inventory based on the average cost of all items available for sale during the period.

Weighted Average Method

An inventory costing method that calculates the cost of goods sold and ending inventory based on the weighted average cost of all goods available for sale during the period.