Which of the Following Are Rate-Sensitive Liabilities

question 58

Multiple Choice

Which of the following are rate-sensitive liabilities?

• A) Short-term consumer loans, cheque accounts and three-month Treasury notes.
• B) Three-month term deposits, three month bankers' acceptances, six-month negotiable certificates of deposit and one-year term deposits.
• C) Short-term consumer loans, six-month negotiable certificates of deposit and one-year term deposits.
• D) Short-term consumer loans, six-month Treasury notes and three-year Treasury bonds.

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Definitions:

Quantity Tax

A tax levied on a specific quantity of a good or service, as opposed to its value, affecting the supply and potentially the price.

Supply Schedule

A table that shows the relationship between the price of a good and the quantity supplied.

Tax Rate

The percentage at which an individual or entity is taxed on their income or the value of goods and services.

Supply Function

An equation or curve demonstrating the quantity of a product that suppliers are willing to produce and sell at various price points, considering other factors constant.