The Challenge of Liquidity Management Is to Maintain Enough Liquidity

question 22

True/False

The challenge of liquidity management is to maintain enough liquidity to avoid a crisis but to sacrifice no more earnings than absolutely necessary.

---

Definitions:

Conditioned Response

A learned reaction to a previously neutral stimulus that has become associated with an unconditioned stimulus through conditioning.

Unconditioned Stimulus

In the context of classical conditioning, a stimulus which innately and automatically induces a response without the necessity of prior education.

Spontaneous Recovery

The reappearance of a previously extinguished conditioned response after a period of rest and with no further conditioning.

Addiction

A chronic, relapsing disorder characterized by compulsive drug seeking, continued use despite harmful consequences, and long-lasting changes in the brain.