Question

In managing deposits financial firms deal with two key issues centered upon:

1. Minimizing transaction costs and default rate on funds.
2. Being able to break-even when comparing cost and revenue.
3. Cost of deposits and deposit-raising needs.
4. Taking a lead in setting deposit rates and how much to raise within the marketplace.

Answer 1

in managing deposits, financial formed always look for taking a lead in setting deposit rates and how much to raise within the marketplace as there are a lot of financial firms who are into managing deposits and it is always a matter of offering an adequate deposit rates so that it could attract a lot of deposits and it is always important to decide the amount of deposits it is going to raise.

Rest of the options like minimising transaction cost and default rate of funds are secondary things for ore deposits management.

Is the correct answer is option( d).