Which of the Following Statements Is True

question 38

Multiple Choice

Which of the following statements is true?

• A)Immediate liquidity obligations refer to the liquidity required of an FI so that it has sufficient funds to repay shareholders immediately.
• B)Immediate liquidity obligations refer to the liquidity required of an FI so that it has sufficient funds to finance new loan demand.
• C)Immediate liquidity obligations refer to the liquidity required of an FI so that it has sufficient funds to repay fully and promptly all maturing liabilities.
• D)Immediate liquidity obligations refer to the liquidity required of an FI so that it has sufficient funds to repay all short-term liabilities immediately.

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Definitions:

Suppliers

Businesses or individuals that provide goods or services to another entity under terms specified in a contract.

Factors of Production

The resources utilized in the production of goods and services, traditionally categorized into land, labor, and capital.

Circular-Flow Model

A model that illustrates the movement of resources and money between firms and households in an economy.

Capital

Wealth in the form of money or other assets owned or employed in business by an individual, firm, or country.