1. What items or variables are determined by liability management decisions
2. What items or liabilities are included in borrowed funds? Provide a brief description of each.
3. What affects the size and cost of core deposits?
4. Explain how are Time CDs not considered “hot money.”
5. 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?
6. What are NOW accounts? How do they differ from regular checking accounts?
7. 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.
