In Practice, an FI That Has 15 Per Cent of Its

question 27

True/False

In practice, an FI that has 15 per cent of its liabilities in demand deposits and other transaction accounts knows that normally only a small proportion of these deposits will be withdrawn on any given day.

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Definitions:

Greenfield Operation

A greenfield operation involves a company starting a new venture from the ground up in a foreign country, rather than purchasing or partnering with an existing local company.

Subsidiary Company

A company that is owned or controlled by another company, which is referred to as the parent company.

Licensing

A business agreement in which one party allows another to use its brand, patent, or technology for a fee or royalty.

Turnkey Operations

A type of project that is constructed so that it can be sold to any buyer as a completed product or operation.