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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