Core Deposits Are Those Deposits That Provide a DI with a Long-Term

question 53

True/False

Core deposits are those deposits that provide a DI with a long-term funding source

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Definitions:

Incremental Cost Approach

A decision-making process that focuses on the changes in total cost due to a change in activity or a decision.

Payback Period

The length of time required to recover the cost of an investment, calculated by dividing the initial investment by the annual cash inflow.

Discount Rate

The interest rate applied in determining the current valuation of future cash flows via discounted cash flow analysis.

Annual Cash Operating Costs

Annual Cash Operating Costs represent the total amount of money a business spends on operating activities during a year, excluding non-cash expenses.