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8-13 One Reason to Include Demand Deposits When Estimating a Bank's

question 39

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8-13 One reason to include demand deposits when estimating a bank's repricing gap is because rising interest rates could lead to high withdrawals.


Definitions:

Myelin Sheath

A protective covering that surrounds axons of some neurons, which helps increase the speed at which nerve impulses travel.

Signals

In communication, signals are transmitted information or stimuli that convey messages between individuals or systems.

Myelin Sheath

A fatty layer that surrounds the axons of some neurons, providing insulation and improving the speed of electrical impulses.

Axons

Long, threadlike parts of nerve cells along which impulses are conducted from the cell body to other cells.

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