One Reason to Exclude Demand Deposits When Estimating a Bank's

question 18

True/False

One reason to exclude demand deposits when estimating a bank's repricing gap is because, by regulation, explicit interest cannot be paid on these deposits.

---

Definitions:

Risk Factor

Any attribute, characteristic or exposure of an individual that increases the likelihood of developing a disease or injury.

Protective Factor

An aspect of an individual's environment or personality that reduces their vulnerability to negative psychological or physical outcomes.

Obsessive-Compulsive Disorder

A mental disorder characterized by unwanted repetitive thoughts (obsessions) and actions (compulsions).

Repetitive

Characterized by repeating the same action or event over and over again.