The First State Bank of Summerville needs to raise $500,000 in nondeposit sources of funds.It knows that the Eurodollar market requires a minimum denomination of $1 million.What factor that affects a bank's use of nondeposit sources of funds is this bank concerned about?

Question

Quizplus · Accepted Answer

The size of the bank is a concern here because the Eurodollar market's minimum denomination of $1 million exceeds the bank's requirement of $500,000, indicating that the bank's size and its funding needs are not aligned with the available nondeposit funding options.

The First State Bank of Summerville Needs to Raise $500,000