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Question
The First State Bank of Summerville knows that, if it issues commercial paper through a subsidiary, tight money supply conditions in the market may result in the interest rate on the commercial paper to be very high. What factor that affects a bank's use of nondeposit sources of funds is the bank concerned about?
A. The relative cost of raising the funds
B. The length of time the funds will be required
C. The risk associated with each source of funds
D. The size of the bank
E. Regulations
Answer
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Related questions
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C. Investment income is added to gross interest received.
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