Which of the Following Is Not a Factor That Affects

question 20

Multiple Choice

Which of the following is not a factor that affects cash flows of a commercial bank?

• A)changes in economic growth
• B)changes in the risk-free interest rate
• C)changes in industry conditions
• D)changes in management abilities
• E)all of the above are factors that affect cash flows of a commercial bank

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Definitions:

Incremental Cash Flows

The additional cash flow a company receives from taking on a new project or investment, after accounting for expenses.

Market Values

The market price at which a service or asset can currently be sold or bought.

Transaction Costs

Expenses incurred during the buying or selling of goods and services, which can include broker fees, commissions, and taxes.