Which of the following is a condition for a DTI to be growing?

Question

Quizplus · Accepted Answer

For a DTI to be growing, the average deposit drain should not only be offset by new deposit funds but must also result in a net growth of deposits. This means that the new deposit funds must more than compensate for the deposit withdrawals, resulting in a net increase in deposits. Therefore, option C is the correct choice. Option A refers to a net drain on deposits which is the opposite of what is required for a DTI to be growing. Option B refers to the peak of the net deposit drain probability distribution, which is not directly related to the growth of a DTI. Option D and E talk about the liability side of the balance sheet and unused loan commitments, respectively, which are also not necessarily related to the growth of a DTI.

Which of the Following Is a Condition for a DTI