Which of the Following Statements Is False

question 50

Multiple Choice

Which of the following statements is false?

• A)A major reason for cheque accounts to be included in an FI's interest-sensitive liabilities is that the majority of these accounts are core deposits.
• B)Cheque accounts should be treated as interest-sensitive liabilities because if interest rates rise, deposits might be withdrawn and thus will need to be replaced by higher-yielding deposits.
• C)The final decision whether or not to include cheque accounts as rate-sensitive liabilities must be made after an analysis of the actual deposit history.
• D)None of the listed options are correct.

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Definitions:

Profits

Financial gains obtained after deducting the costs, expenses, and taxes associated with doing business or an economic activity.

Sole Proprietorship

A business structure where a single individual owns and operates the business, personally responsible for all debts and legal actions.

Traditional Form

Traditional form refers to conventional or long-established ways of doing something, often contrasted with more modern methods.

Corporation

A legal entity that is separate and distinct from its owners, capable of conducting business, owning assets, and being liable for debts.