The Most Important Developments That Have Reduced Banks' Income Advantages

question 10

Multiple Choice

The most important developments that have reduced banks' income advantages in the past thirty years include:

• A) the increase in off-balance sheet activities.
• B) the growth of securitization.
• C) the elimination of Regulation Q ceilings.
• D) the competition from money market mutual funds.

---

Definitions:

Periodic Inventory System

An inventory system that updates inventory records at specific intervals, requiring physical counts to determine inventory levels.

Cost Of Goods Sold

Direct expenditures linked to the production of goods sold by a business.

LIFO Basis

A method of inventory valuation where the last items placed into inventory are the first ones taken out for cost of goods sold calculations.

Periodic Inventory System

An inventory accounting method where inventory levels are updated and physical counts are conducted at specific intervals.