Liquidity Risk Is a Function of Many Factors

question 53

Multiple Choice

Liquidity risk is a function of many factors. Which of the following is NOT one of those factors?

• A) Funding sources.
• B) Location of depositors.
• C) Average size of accounts.
• D) Number of depositors.
• E) All of the above are liquidity risk factors.

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Definitions:

Revenues

Revenues represent the total income generated from the sale of goods or services before any expenses are subtracted.

Product Lines

Groups of related products offered by a business, typically having similar uses or characteristics.

Profit Centers

Refers to distinct parts of a business that directly contribute to the company's profit through their operations and performance assessment.

Direct Expenses

Costs that can be directly attributed to the production of specific goods or services, such as raw materials and labor.