Which of the Following Is False Regarding Community Banks

question 22

Multiple Choice

Which of the following is false regarding community banks?

• A)They typically have assets in excess of $1 billion.
• B)They typically operate in a limited geographic area.
• C)Community banks often focus on lending to small businesses.
• D)A bulk of their funding comes from deposits.
• E)They tend to grow at a modest rate.

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Definitions:

Marginal Product

The additional output that is produced as a result of adding one more unit of a specific input, holding all other inputs constant.

Total Cost

The overall expense incurred in the production of goods or services, combining both fixed and variable costs.

Average Total Cost

The total cost of production divided by the total output, indicating the average cost per unit of output.

Average Fixed Costs

The fixed expenses of a company or project divided by the number of units produced, decreasing as production increases.