Which of the Following Statements Is True

question 31

Multiple Choice

Which of the following statements is true?

• A)A major reason for cheque accounts to be excluded from 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B)Cheque accounts should be treated as interest-sensitive liabilities because if interest rates fall, deposits might be withdrawn and thus will need to be replaced by higher-yielding deposits.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 by predicting depositors' behaviours.
• D)None of the listed options are correct.

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Definitions:

Consolidated Worksheet

An internal document used by accountants to combine the financials of a parent company and its subsidiaries, helping in the preparation of consolidated financial statements.

Consolidated Bonds Payable

The total amount of bonds owed by both a parent company and its subsidiaries as presented in consolidated financial statements.

Proposal

A plan or suggestion put forward for consideration or discussion, especially in a business or formal context.

Coattail Provision

A feature in shareholders' agreements that obliges minority shareholders to join in the sale of a company if the majority shareholders agree to sell their shares.