The Greater the ________ Ratio,the More Liquid Is the Institution,ceteris

question 40

Multiple Choice

The greater the ________ ratio,the more liquid is the institution,ceteris paribus.

• A)borrowed funds to total assets
• B)core deposits to total assets
• C)loans to deposits
• D)unused commitments to lend to total assets
• E)unused commitments to lend to liquid assets

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Definitions:

Secured Bonds

Bonds that are backed by collateral or specified assets in case of issuer default.

Specific Assets

Assets identifiable and unique to a company, such as patents, trademarks, or proprietary technology.

Appreciation

An increase in the value of an asset over time, enhancing its worth and purchasing power.

Coupon Bond

A bond that pays the holder a fixed interest rate (coupon) payment over the bond's lifespan, with the principal paid back at maturity.