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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