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Question 13 Which of the following sources of funds or liabilities for banks would be considered...

Question 13

Which of the following sources of funds or liabilities for banks would be considered to be “volatile funds”
or “hot money”?

A.

MMDA

B.

Savings accounts

C.

NOW accounts

D.

Repurchase agreements and Federal funds purchased

E.

Time deposits under $100,000

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Answer #1

Repurchase agreement and federal funds purchased

repurchase agreement, federal funds purchased, Jumbo CDs, Eurodollar time deposit , foreign deposits are the liabilities would be considered as volatile funds or hot money. It's categorized under borrowed funding except this remaining MMDA, saving account , NOW account and small time deposit are categorized under retail funding.

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