Which of the Following Are Rate-Sensitive Liabilities

question 58

Multiple Choice

Which of the following are rate-sensitive liabilities?

• A) Short-term consumer loans, cheque accounts and three-month Treasury notes.
• B) Three-month term deposits, three month bankers' acceptances, six-month negotiable certificates of deposit and one-year term deposits.
• C) Short-term consumer loans, six-month negotiable certificates of deposit and one-year term deposits.
• D) Short-term consumer loans, six-month Treasury notes and three-year Treasury bonds.

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Definitions:

Net Profit Margin Percentage

A financial metric that shows the percentage of net income generated from total revenues, indicating a company's profitability.

Year 2

Typically refers to the second year of operation, reporting, or analysis within a given context, such as fiscal years, project timelines, or investment periods.

Return On Equity

A measure of a corporation's profitability that reveals how much profit a company generates with the money shareholders have invested.

Dividend Payout Ratio

The percentage of net income that a company pays out to its shareholders as dividends, indicating how much money a company returns to shareholders versus retaining.