Which of the following is a bank debt that appears to be highly sensitive to the market perception of the bank's risk?

Question

Quizplus · Accepted Answer

Subordinated debt capital is considered to be highly sensitive to the market perception of the bank's risk as it is a type of debt that is lower in priority compared to other debts. Therefore, investors may perceive higher risk in the bank and demand higher yields, resulting in the sensitivity of subordinated debt capital to market perception. Deposits, Fed funds, repos, and preferred stock are not considered highly sensitive to market perception.

Which of the Following Is a Bank Debt That Appears