A Disadvantage of Using Stored Liquidity Management to Manage a FI's

question 64

Multiple Choice

A disadvantage of using stored liquidity management to manage a FI's liquidity risk is

• A)the resulting shrinkage of the FI's balance sheet.
• B)the high cost of purchased liabilities.
• C)the accessibility of international money markets.
• D)tax considerations.

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Definitions:

MA/CA × 100

A formula used to calculate the Mental Age (MA) divided by the Chronological Age (CA), multiplied by 100, often used in intelligence testing.

Theory of Multiple Intelligences

A theory proposed by Howard Gardner, suggesting that individuals have various kinds of intelligences, such as linguistic, logical-mathematical, and spatial.

Gardner

Refers to Howard Gardner, an American developmental psychologist best known for his theory of multiple intelligences.

Charles Spearman

A British psychologist known for his work in statistics and intelligence, especially for Spearman's rank correlation coefficient and the concept of 'g' or general intelligence.