A Shift from Core Deposits to Non-Core Deposits Will

question 38

Multiple Choice

A shift from core deposits to non-core deposits will:

• A)always increase the amount of fixed rate assets.
• B)always increase the amount of rate-sensitive assets.
• C)generally increase the amount of non-earning assets.
• D)generally reduce net interest income.
• E)b.and d.

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Definitions:

Income Statement

A financial statement that shows a company's revenues, expenses, and net income over a specific period of time.

Balance Sheet

A financial statement that shows a company's assets, liabilities, and shareholders’ equity at a specific point in time, providing insights into its financial condition.

Salary Allowance

An amount of money given to employees in addition to their regular salary, often to cover specific expenses.

Interest Allowance

An allowance for the interest portion in various financial contexts, though detail or context-specific significance may vary.