Which of the Following Results in a Net Liquidity Drain

question 21

Multiple Choice

Which of the following results in a net liquidity drain?

• A) Demand deposits increase $120; loans increase $80
• B) Reverse repurchase agreements increase $50; demand deposit decrease $50
• C) Repurchase agreements increase $100; Demand deposit decrease $50
• D) Demand deposits decrease $120; loan repayments are $250
• E) Demand deposits increase $10; loans decrease $10

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Definitions:

Delegate

The act of entrusting tasks or responsibilities from a higher authority to a lower-ranking individual or group while retaining accountability.

High Priority

A task or concern that is deemed to be of utmost importance and urgency, requiring immediate attention or action.

Appropriate Ways

Suitable or proper methods and approaches in a given context, often guided by norms, regulations, or ethical considerations.

Symbolically Important

Items, actions, or concepts that hold significant meaning or value beyond their literal sense, often representing broader ideas or principles.