Overdraft Fees

question 29

Multiple Choice

Overdraft fees:

• A) represent a risk charge.
• B) are a source of wholesale funding.
• C) reduce reserve requirements.
• D) increases capital.
• E) have increased in maturity.

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Definitions:

Weighted Average

A calculation that takes into account the varying degrees of importance of the numbers in a dataset, often used in accounting to value inventory.

Common Shares

Units of ownership interest or equity in a corporation that entitle their holder to a share of the corporation's earnings and give them the right to vote.

Earnings Per Share

A financial metric that indicates the portion of a company's profit allocated to each outstanding share of common stock.

Preferred Shares

A type of ownership in a corporation that has a higher claim on assets and earnings than common stock and often pays dividends at a fixed rate.