Core Deposits Tend to Be More Interest Elastic Than Volatile

question 15

True/False

Core deposits tend to be more interest elastic than volatile liabilities.

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Definitions:

Efficient Price

A price level where the quantity supplied equals the quantity demanded, leading to an optimal allocation of resources.

Nonrival

A characteristic of goods where one person's consumption does not reduce the availability of the good for consumption by others.

Nonexcludable

A characteristic of a good or service where it is impossible to prevent individuals from enjoying its benefits once it is provided.

Marginal Social Cost

The additional cost to society as a whole from producing one extra unit of a good or service, including both private costs and externalities.