Which One of the Following Is a Source of Liquidity

question 10

Multiple Choice

Which one of the following is a source of liquidity risk for a bank?

• A) Predicted increase in net deposit drain before Christmas
• B) Maturation of notes payable
• C) Corporation calls in a bond the bank is holding
• D) A natural disaster in the bank's community
• E) None of the above

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Definitions:

Ordinary Maintenance

Routine and regular upkeep activities required to maintain or preserve assets in their original condition, preventing deterioration over time.

Asset Improvements

Asset improvements involve the enhancement or upgrade of an asset, increasing its value or extending its useful life, without necessarily changing its original purpose.

Ordinary Maintenance

Routine upkeep and repairs necessary to keep an asset operating under normal conditions.

Asset Improvements

Expenditures made to increase the service life or value of an asset without changing its original purpose.