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:

Relatively Inelastic

Term indicating that the demand or supply for a good or service changes only slightly in response to changes in price.

Percentage Increase

A mathematical calculation to determine the relative growth of a value by a certain percentage.

Ceteris Paribus

A Latin phrase meaning "all other things being equal," used in economics to indicate that other variables remain constant during an analysis.

Producer Surplus

The difference between the price at which producers are willing to sell a good and the actual market price they receive.