Which of the Following Statements Is True

question 31

Multiple Choice

Which of the following statements is true?

• A)A major reason for cheque accounts to be excluded from an FI's interest-sensitive liabilities is that the majority of these accounts are core deposits.
• B)Cheque accounts should be treated as interest-sensitive liabilities because if interest rates fall, deposits might be withdrawn and thus will need to be replaced by higher-yielding deposits.
• C)The final decision whether or not to include cheque accounts as rate sensitive liabilities must be made by predicting depositors' behaviours.
• D)None of the listed options are correct.

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Definitions:

Federalism

A system of government in which power is divided between a central authority and constituent political units.

State Traditions

The historical and cultural practices, norms, and values that are recognized and followed within a specific state.

National Government

The political authority that governs an entire nation, as opposed to local or state government.

Gibbons v. Ogden

A landmark Supreme Court case in 1824 that held Congress has the power to regulate interstate commerce under the Commerce Clause of the Constitution.