For a DI in the U

question 21

Multiple Choice

For a DI in the U.S. with $200 in assets and $180 in deposits, a liquid assets ratio of 15 percent

• A)would require $27.00 in cash and liquid government securities.
• B)would require $27.00 in liquid government securities.
• C)would require $30.00 in cash and liquid government securities.
• D)would require $30.00 in liquid government securities.
• E)None of the above.

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Definitions:

Commercial Paper

An unsecured, short-term debt instrument issued by a company, typically for the financing of accounts receivable, inventories and meeting short-term liabilities.

Short-term Notes

Debt obligations that are due for repayment within a short period, typically less than one year.

High-quality Financial Statements

Financial statements that are accurate, complete, and able to be verified, giving a true and fair view of the financial performance and position of a company.

True Performance

An accurate measurement of performance, often in financial terms, reflecting the real achievements of a business or investment over a period.