A Bank Meets a Deposit Withdrawal with One of the Following

question 36

Multiple Choice

A bank meets a deposit withdrawal with one of the following alternatives. Which one of the following is an example of using stored liquidity to meet a deposit withdrawal?

• A)Increasing Eurodollar deposits
• B)Contacting an investment banker to find new corporate deposits
• C)Increasing fed funds borrowed
• D)Issuance of a negotiable CD
• E)Selling the bank's holdings of T-bills

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