17-79 in a Crisis,which of the Following Are Relatively Less

question 16

Multiple Choice

17-79 In a crisis,which of the following are relatively less likely to withdraw funds quickly from banks and thrifts?

• A)Correspondent banks.
• B)Small business corporations.
• C)Individual depositors.
• D)Mutual funds.
• E)Pension funds.

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Definitions:

Financial Leverage

Taking advantage of borrowed finances to raise the possible outcomes of an investment.

Business Risk

The exposure a company or investor has to factor(s) that will lower its profits or lead to a loss.

Financial Risk

Financial risk is the possibility of losing money on investments or business operations due to market fluctuations, credit issues, or other financial uncertainties.

Degree of Total Leverage

A financial ratio that measures the sensitivity of a company's earnings per share to fluctuations in its operating income, considering both operating and financial leverage.