Use the article “A Surprising Shakeout Among Banks as Rates Rise - WSJ20171101” to answer the...

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Use the article “A Surprising Shakeout Among Banks as Rates Rise - WSJ20171101” to answer the...

Use the article “A Surprising Shakeout Among Banks as Rates Rise - WSJ20171101” to answer the following questions:

Question: The deposit beta for a bank like JP Morgan Chase (JPMC) is relatively high because:

A) JPMC makes mostly multifamily real estate loans

B) JPMC is a small regional lender

C) JPMC has a weak brand and market position

D) JPMC’s wealthy customers are able to take their deposits elsewhere

E) JPMC charges higher rates on loans

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Answer 1

Answer #1

Option D is correct

JPMC’s wealthy customers are able to take their deposits elsewhere

Deposits of JPMC is risky for the banks as wealthy customer can switch to some other banks.

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Answer 2

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