What type of bank deposit source of funds is most sensitive to both changes in bank risk and interest rates?
A) core deposits
B) purchased deposits
C) there is no difference between a and b
D) demand deposits

Question

Quizplus · Accepted Answer

Purchased deposits are more sensitive to changes in bank risk and interest rates because they are often acquired in the wholesale market where depositors are more rate-sensitive and aware of the bank's risk profile, unlike core or demand deposits which are more stable and less sensitive to such changes.

What Type of Bank Deposit Source of Funds Is Most