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Which of the following is a reason that banks may favor fee compensation over balance compensation? Balance compensation is not as visible as fees for
- Which of the following is a reason that banks may favor fee compensation over balance compensation?
- Balance compensation is not as visible as fees for budgeting purposes.
- The strategy involves attracting deposits to fund their loans.
- Earning credits used to determine the value of collected balances are taxable.
- Deposit balances increase liabilities on the balance sheet.
- If a bank is compiling lists of current stockholders and bondholders for the purpose of remitting dividend and interest payments, in which of the following roles is it acting?
- Paying agent
- Transfer agent
- Corporate trustee
- Registrar
- Increasing liquidity to adequate levels tends to have which effect on a company?
- Increases collection float
- Removes need to issue securities
- lower financial leverage
- Possible excess cash balances
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