Unsecured Liabilities Created from the Exchange of Immediately Available Funds

question 52

Multiple Choice

Unsecured liabilities created from the exchange of immediately available funds are known as:

• A) federal funds purchased.
• B) repurchase agreements.
• C) federal funds sold.
• D) pledged securities.
• E) brokered deposits.

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Definitions:

Additional Paid-in Capital

The amount of equity in a company that shareholders have contributed in addition to the nominal or par value of the shares.

Financing Activities

Transactions related to raising capital and repaying shareholders, including issuing equity and taking on loans.

Cash Flow Statement

A financial statement that shows how changes in balance sheet accounts and income affect cash and cash equivalents, dividing activity into operating, investing, and financing activities.

Treasury Stock

Shares that were once part of the outstanding shares of a company but were later reacquired by the company itself.