Which of the Following Statements Is False

question 50

Multiple Choice

Which of the following statements is false?

• A)A major reason for cheque accounts to be included in an FI's interest-sensitive liabilities is that the majority of these accounts are core deposits.
• B)Cheque accounts should be treated as interest-sensitive liabilities because if interest rates rise, deposits might be withdrawn and thus will need to be replaced by higher-yielding deposits.
• C)The final decision whether or not to include cheque accounts as rate-sensitive liabilities must be made after an analysis of the actual deposit history.
• D)None of the listed options are correct.

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Definitions:

Future Consumption

Planning or saving for the purchase of goods and services in the future, often involving trade-offs between current and future spending.

Currency Intervention

A government’s buying and selling of its own currency or foreign currencies to alter international exchange rates.

Foreign Exchange

The market where currencies are traded, allowing for the conversion of one currency into another.

Monetary Policy

The process by which a country's central bank controls the money supply, often targeting an inflation rate or interest rate to ensure economic stability and growth.