Which of the Following Is an Option When a Liquidity

question 33

Multiple Choice

Which of the following is an option when a liquidity deficit arises and a bank wants to use stored liquidity in its assets to cover the deficit?

• A)Borrowing in the Federal Funds market
• B)Issuing a jumbo CD
• C)Selling Treasury Bills
• D)Increasing their correspondent deposits with another bank
• E)All the options are correct

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Definitions:

Weighted Average

Weighted average is a calculation that takes into account the varying degrees of importance of the numbers in a data set.

Free Cash Flows

The amount of cash generated by a business that is available for distribution to its securities holders after capital expenditures.

Year 0 Value

A reference to the initial value or investment amount at the beginning of a project or investment period, often used in financial analysis.

Weighted Average

A computation that considers the different levels of significance of numbers within a dataset.