Different banks in a country offers high interest rate on Negotiable certificate of deposits. It a. Attracts banks to increase their deposit b. Banks will become insolvent c. Attracts banks to purchase more assets d. Attracts customers to increase their loan

Different banks in a country offers high interest rate on Negotiable certificate of deposits. It a. Attracts banks to increase their deposit b. Banks will become insolvent c. Attracts banks to purchase more assets d. Attracts customers to increase their loan

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter6: Cash And Receivables

Section: Chapter Questions

Problem 12C: Researching GAAP Situation Hamilton Company operates in an industry with numerous competitors. It is...

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Concept explainers

Regulation of Commercial Banks

The main function of any commercial bank is accepting deposits and lending money to borrowers. Apart from these two activities, commercial banks provide a host of other services to their customers, like discounting bills of exchange, acting as a custodian of a customer's will, and so on. In the absence of a proper regulatory framework or proper regulations in place, the commercial banks would have ended up charging exorbitant or varied rates of interest or service charges on the funds loaned by them or the services performed by them.

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15) Different banks in a country offers high interest rate on Negotiable certificate of deposits. It

Attracts banks to increase their deposit

Banks will become insolvent

Attracts banks to purchase more assets

Attracts customers to increase their loan

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