17-52 Which of the Following Is a Condition for a DI

question 54

Multiple Choice

17-52 Which of the following is a condition for a DI to be growing?

• A)Net positive drain on deposits.
• B)Peak of the net deposit drain probability distribution should lie at a point to the right of zero.
• C)Average deposit drain such that new deposit funds more than offset deposit withdrawals.
• D)The liability side of its balance sheet is decreasing.
• E)Unused loan commitments is increasing.

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Definitions:

Normative Question

A question that addresses how things should be rather than how they are, often involving subjective judgments and values.

Tax Base

The total amount of assets or income that can be taxed by a government, serving as a critical source of fiscal revenue.

Assets

Resources owned by a business or individual that have economic value and can be converted into cash.

Liabilities

Financial obligations or debts that an entity owes to another party, which must be settled over time through the transfer of economic benefits.