In Relation to a Bank,liquidity Management Means

question 65

Multiple Choice

In relation to a bank,liquidity management means:

• A) the bank's ability to quickly convert deposits into loans.
• B) the bank's ability to onsell its loans.
• C) the bank's ability to have funds available when depositors' funds mature.
• D) the bank's policies and practices in identifying and managing its loans portfolios.

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Definitions:

Money Market Securities

Short-term financial instruments with high liquidity and minimal risk, such as Treasury bills and certificates of deposit.

Total Assets

The sum of all current and non-current assets owned by a company, reflecting its overall value.

Open-End Funds

Mutual funds that continuously issue new shares or redeem existing shares and do not have a fixed number of shares available for the public.

NAV

Net asset value, calculated as the total value of a fund's assets minus its liabilities, usually applied to mutual funds.