Banks Can Improve Their Liquidity Position by Restructuring Their Asset

question 3

Multiple Choice

Banks can improve their liquidity position by restructuring their asset portfolio to contain fewer ____ and more ____.

• A) excess reserves; Treasury bills
• B) Treasury bonds; corporate bonds
• C) loans; Treasury bills
• D) none of the above

---

Definitions:

Authority

The power or right to give orders, make decisions, and enforce obedience, or an individual or organization possessing this power.

Warranty of Authority

A legal assurance by an agent to a third party that they have the authority to act on behalf of another person or entity.

Estate

The collective net worth of an individual, including all of their assets, property, and financial interests, especially as considered in the context of succession or inheritance.

Authority

The power or right to give orders, make decisions, and enforce obedience.