Which of the following statements is true of the Loans to Deposit Ratio?   a. A high ratio means that there is a lesser reliance on money market than core deposits for the funding of its loans. While the lower the ratio indicates that the institution is not able to rely on core deposits to fund loans. b. The Loans to Deposit ratio is calculated by multiplying total loans by total deposits. c. A high ratio means that there is a heavier reliance on the money market than core deposits for the funding of its loans. While the lower the ratio indicates that the institution is able to rely on core deposits to fund loans. d. A low ratio means that there is a heavier reliance on the money market than core deposits for the funding of its loans. While the higher the ratio indicates that the institution is able to rely on core deposits to fund loans

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Which of the following statements is true of the Loans to Deposit Ratio?

 

a. A high ratio means that there is a lesser reliance on money market than core deposits for the funding of its loans. While the lower the ratio indicates that the institution is not able to rely on core deposits to fund loans.

b. The Loans to Deposit ratio is calculated by multiplying total loans by total deposits.

c. A high ratio means that there is a heavier reliance on the money market than core deposits for the funding of its loans. While the lower the ratio indicates that the institution is able to rely on core deposits to fund loans.

d. A low ratio means that there is a heavier reliance on the money market than core deposits for the funding of its loans. While the higher the ratio indicates that the institution is able to rely on core deposits to fund loans.

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