Which of the following indicates the potential for deposits leaving a bank?
A) High business activity and growth
B) Deposits that are inelastic to changes in interest rates
C) An aggressive bank loan officer
D) Large deposits held by a single customer
E) Small unused commercial credit lines outstanding

Question

Quizplus · Accepted Answer

Large deposits held by a single customer can indicate potential for deposit outflows, as the loss of that customer's deposits could have a significant impact on the bank's liquidity.

Answer: E
 Small unused commercial credit lines outstanding can indicate potential for deposit outflows, as these lines of credit may be withdrawn by the customer, reducing the bank's available funds.

Which of the Following Indicates the Potential for Deposits Leaving