Question

A monthly depositor becomes a semi-weekly depositor in all of the following situations EXCEPT when the:

A. lookback period amount exceeds $200,000.00.
B. liability in a deposit period is $50,000.00.
C. lookback period amount exceeds $50,000.00.
D. liability in a deposit period exceeds $100,000.00.

Answer 1

A monthly depositor becomes a semi-weekly depositor in all situations except when the liability in a deposit period exceeds $100,000.00.

Step-by-step explanation:

A monthly depositor becomes a semi-weekly depositor in all of the following situations EXCEPT when the liability in a deposit period exceeds $100,000.00.

When a depositor makes deposits into a bank, the bank views these deposits as liabilities because it owes the depositors the money. In this case, the depositor is categorized as a semi-weekly depositor if the liability in a deposit period exceeds $100,000.00.

For example, if a depositor deposited $120,000.00 in a month, they would become a semi-weekly depositor since the liability in that deposit period exceeds $100,000.00.