Each of the Following Balance Sheet Portfolio Items Are Liabilities

question 98

Multiple Choice

Each of the following balance sheet portfolio items are liabilities of a bank,except:

• A) term deposits.
• B) bill acceptance facilities.
• C) certificates of deposit.
• D) overdrafts.

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Definitions:

Risk Diversified

The strategy of spreading investments across various assets to reduce exposure to risk in any single area.

Expected Income

The amount of income an individual anticipates or forecasts to receive over a certain period.

Probability

A numeric evaluation representing the probability of an event taking place, where 0 signifies no chance and 1 signifies certainty.

Expected Income

The weighted average of all possible income outcomes, where the weights are the probabilities of each outcome occurring.