Which of the Following Statements Is True

question 47

Multiple Choice

Which of the following statements is true?

• A)Economically speaking, contingent assets and liabilities are contractual claims that might or might not impact on the economic value of a bank.
• B)Economically speaking, contingent assets and liabilities are contractual claims that do not impact on the economic value of a bank.
• C)Economically speaking, contingent assets and liabilities are contractual claims that directly impact on the economic value of a bank.
• D)Economically speaking, contingent assets and liabilities are contractual claims that indirectly impact on the economic value of a bank.

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Definitions:

Personal Satisfaction

The level of contentment or fulfillment a person attains from achieving personal or professional goals.

Cash Bonus

A monetary reward given to employees in addition to their base salary as an incentive for achieving specific performance targets.

Return On Investment

A performance measure used to evaluate the efficiency or profitability of an investment, calculated as net profit divided by the cost of the investment.

Divisional Profits

The earnings generated by distinct segments or divisions within a larger company, often used to assess their financial performance.