Which of the Following Could Be Used to Identify a Potential

question 31

Multiple Choice

Which of the following could be used to identify a potential increase in borrowing by customers that might deplete a bank's cash reserves?

• A) The amount of insured versus uninsured deposits
• B) Large deposits held by a single entity
• C) Volume of Fed Funds sold
• D) The sensitivity of deposits to changes in the level of interest rates
• E) Unused commercial credit lines outstanding

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Definitions:

Center

The midpoint or origin in a coordinate system; also refers to the midpoint of a shape or object in geometry.

Method of Substitution

A technique used to solve systems of equations by solving one equation for one variable and then substituting that expression into the other equation(s).

System of Equations

A set of equations with the same variables, where the solution is the set of values that satisfies all equations simultaneously.

Hyperbola

A type of smooth curve lying in a plane, defined by its geometric properties or by equations that satisfy its definition, characterized by two branches mirrored across the axis or center.