- What items or variables are determined by liability management decisions
- What items or liabilities are included in borrowed funds? Provide a brief description of each.
- What affects the size and cost of core deposits?
- Explain how are Time CDs not considered “hot money.”
- What are transaction accounts? What is their cost to the bank? How do they compare with other liabilities in terms of being a source of funds?
- What are NOW accounts? How do they differ from regular checking accounts?
- Part (a), Describe the least expensive source of funds for a typical bank.
Part (b), explain why interest costs do not equal the effective cost of bank liabilities.