A Shift from Core Deposits to Non-Core Deposits Will

question 5

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.

---

Definitions:

Negotiable Instrument

A documented promise to pay a certain sum of money, either when asked for or at a predetermined date.

Uniform Electronic Transactions Act

A legal framework adopted by some states that equates electronic signatures and records with paper ones, facilitating e-commerce and digital contracts.

Indorse

Indorse is an alternative spelling of endorse, typically referring to the act of signing the back of a negotiable instrument to make it payable to someone other than the designated payee.

Unattached Piece

A component or part that is not connected or associated with the main body or structure to which it could belong.