Unlike Most Other Businesses,a Bank's Balance Sheet Is Made Up

question 77

Multiple Choice

Unlike most other businesses,a bank's balance sheet is made up mainly of:

• A) real assets and financial liabilities.
• B) real liabilities and financial liabilities.
• C) real assets and real liabilities.
• D) financial assets and liabilities.

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Definitions:

Risk-Free Rate

The theoretical return of an investment with zero risk, often represented by U.S. government bonds.

Future Exchange Rate

An agreed-upon price for exchanging currency at a future date, used in forward contracts and currency futures trading.

Indifferent

A state of having no preference between two or more outcomes or items.

Canadian Security

A financial instrument issued in Canada that represents an investment and provides evidence of debt, an equity stake, or a right to ownership in terms of stocks, bonds, or options.