Which of the following statement/(s) is/are false-Statement I: Savings deposit do not have restriction on number of withdrawal and deposit in a day. Statement II: Savings deposits do not offer overdraft facility to depositor. Statement III: Saving deposit holders can earn interest on available balance. O a. Statement I1&lII O b. Statement 1&lII O c. Statement I & II O d. Only statement III is false. Clear my choice
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- Bank Risks] Banks sometimes issue large, mark etable certificates of deposits when other deposits declin e. The chart below exhibits the ratio of large time deposits to the total deposits in commercial banking industry in the US from 1995 to 2008. As you can o bserve, large time deposits had become increasingly important source of funds for banks. Note that a time deposit is an in terest-bearing bank deposit wi th a specified period of maturity. It is a mon ey deposit at a banking in stitution that cannot be withdrawn for a specific term or period of time. FRED - Large Time Deposits, Al Commercial Banks/Deposits, Al Commercial Bariks 0.32 0.30 0.28 0.26 0.24 0.22 020 0.18 a16 014 0.12 1996 1998 2000 2002 2004 2006 2008 Source Board of Governors of the Federal Reserve System (US) mytredig/F2kV What type of bank risk(s) (Liqui dity risk, credit risk, interest-rate risk, trading risk) does more likely account for this increase in large time dep osits and why? B. of U.S. S/BIl. of U.S. SCorry has an income of $80,000 that he is willing to spend over a year. If his bank account's interest rate is 3.05% and the cost associated for him to visit the bank is $5.00. What is Corry's average money holding? O a. $488.00 O b. $2,560.74 O c. $5,000.00O O d. $16.00 O Type here to search 24The value of money depends on which of the following factors? O a. The durability of the bills O b. The weight of the coin Ос. The price level O d. The previous metal used to mint the coin
- An issuing bank is responsible for: O a. preparing a bill of lading O b. making freight arrangements O c. issuing a certificate of origin O d. issuing a letter of credit10 Based on the Required Reserves the Reserve Ratio must be ASSETS LIABILITIES Required Reserves $190 Checking Deposits $1,900 Excess Reserves $ 810 Loans $ 900 Total Assets $1,900 Total Liabilities $1,900 5% 10% 20% 19% O None of the aboveMoney is any asset that is generally accepted as payment for goods, services, wages, and other payments to inputs. This function of money is called O unit of account. O store of value O standard of deferred payment. O medium of exchange.
- What is the difference between a debit card and a credit card? A purchase with a debit card you never have to pay for. A credit card comes directly from your checking account. O A debit card purchase comes directly from your checking account. A purchase with a credit card you never have to pay, ever. O A debit card has your purchases come directly from your checking account. A credit card collects the amount that you spend the entire month. If you do not pay the entire balance, you will have to pay interest. O A debit card collects the amount you spend over the month and sends you a bill. If you do not pay the whole bill, you have to pay interest. A credit card purchase comes directly from your checking account.Assume the annual fixed term deposit rate is 3.4% in a New Zealandbank. Mary has $10,000 and plans to deposit into the bank for two years. She also wants thebank to reinvest her interests. The bank gives her the option to choose payment frequencyin each year from 1, 2, and 4. The frequency tells how many times the bank pays her theinterests. Suppose there is no interest tax.a) How much Mary will get when the deposit matures after two years, when the interestpayment frequencies per year are 1, 2, and 4 times, respectively? Which option is bestfor Mary? [5 marks]b) Former Chief Economist, John McDermott, in the Reserve Bank of New Zealand, saysthat inflation is a thief in your wallet. Suppose the inflation rate in New Zealand inthe coming a few years is 2%. What are the real rates of returns of the annual bankdeposit rate under the approximation rule, and in the exact relationship, respectively.Question 2 If you have a credit card limit of $1,000, you should never carry a balance of more than $800. True. False, Question 3 Credit cards are expensive ways to borrow money. True. False. Sign-i Your Save and Quit Your interest rate on your loan with the credit card company can go up big time if DELL & $ 4. 2# 3 y e
- Bastion owes Federioco $100 for the concert ticket that Federico purchased for him. Federico owes Delilah $100 because of a bet they made. If Federico writes on a piece of paper. "Bastion: Pay Delilah $100" and signs it, this would be considered a OA certificate of deposit OB. promissory note Oc check OD. nonnegotiable instrument OE draftRio Tinto pays a tee to a bank for its assistance during an issue of securities. Rio Tinto does NOT have a deposit account at that bank. The bank deposits at the bank receiving the fee and the bank deposits in the banking system OA decrease; decrease O B. do not change: decrease do not change; do not change OD. increase; decrease OE decrease: do not changeWhen you open a savings account, you and your joint account holder will need these fouritems. Put a checkmark next to or highlight, in the image below, the items you knowyou/your parent/guardian already have and circle any items you would need to work onobtaining