Which of the Following Statements Is NOT True

question 58

Multiple Choice

Which of the following statements is NOT true?

• A)Stored liquidity management involves liquidation of assets.
• B)Traditionally DTIs have stored cash reserves at the Federal Reserve and in their vaults to overcome liquidity risk.
• C)When the DTI uses its cash as the liquidity adjustment mechanism, both sides of its balance sheet contract.
• D)DTIs hold cash in excess of the minimum required to meet liquidity drains.
• E)A DTI sustains no cost under stored liquidity risk management.

---

Definitions:

Mean

In statistics, the average of a set of numbers, calculated by adding them all up and dividing by the count of those numbers.

Variation

Variation refers to the differences in characteristics or traits among individuals within a population, arising from genetic diversity or environmental factors.

Standard Deviation

A statistical measurement that quantifies the variation or dispersion of a set of data values from the mean.

Range

In statistics, range refers to the difference between the highest and lowest values in a dataset, indicating the dataset's spread.