17-70 Which of the Following Is NOT a Primary Source

question 57

Multiple Choice

17-70 Which of the following is NOT a primary source of liquidity?

• A)Excess cash reserves over and above regulatory reserve requirements.
• B)Borrowings in the money market.
• C)Borrowings in the purchased funds market.
• D)Capital notes and other long-term financing alternatives.
• E)Cash-type assets that can be sold with little price risk and low transaction costs.

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Definitions:

Interest Rates

The cost of borrowing money or the return for investing money, usually expressed as a percentage of the principal amount.

Future Dollars

Currency value projected at a future date, often used in the context of inflation or investment growth.

Net Present Value

The difference between the present value of cash inflows and outflows over a period of time, used in capital budgeting to assess the profitability of an investment.

Cash Flows

The aggregate sum of funds flowing in and out of a company, particularly influencing its liquid assets.