One of the Problems with Liquidity Management for a Bank

question 56

True/False

One of the problems with liquidity management for a bank is that rarely does the demand for funds equals the supply of funds at a given time.

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Definitions:

Supply Strategy

A plan for managing the procurement of goods and services to meet organizational needs effectively.

Current Markets

The existing state of the marketplace, including trends, consumer demands, and competitive landscape.

Future Needs

Anticipated requirements or demands that an organization or individual will need to address in the coming period.

Supply Objectives

Defined goals that guide an organization's procurement strategy aiming for efficiency and sustainability in obtaining goods and services necessary for operations.