Which of the Following Statements Is Correct

question 32

Multiple Choice

Which of the following statements is correct?

• A)Demand for liquidity and sources of liquidity for a bank are generally equal to each other.
• B)Most liquidity problems in the banking system arise from outside a bank.
• C)Liquidity problems for a bank are made easier because most of their liabilities are not subject to immediate repayment.
• D)Liquidity management is easy for a bank because a bank that is very liquid is also very profitable.
• E)All of the options are correct.

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