What Are the Possible Ways That the Bank Can Meet

question 96

Multiple Choice

What are the possible ways that the bank can meet an expected net deposit drain of +4 percent using stored liquidity management techniques?

• A)Liquidate all cash holdings.
• B)Utilize further the Fed funds market.
• C)Liquidate some securities and/or loans.
• D)Liquidate all cash and use more Fed funds.
• E)All of the options are suitable techniques.

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