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AssignmentMultiple Choice

Organization and Structure of the Banking Industry

Question 2 • (AG Q4) Financial Literacy: 25-26 (JRush)

A bank’s run-off rate is the percentage of accounts receivable that are delinquent in a 30-day period.

Answer
A
True
B
False

Explanation

False. A run-off rate measures the share of funds or liabilities expected to leave an institution during a period, such as deposits being withdrawn. It does not measure the percentage of accounts receivable that become delinquent in 30 days.

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