What Are the Possible Ways That the Bank Can Meet

question 108

Multiple Choice

What are the possible ways that the bank can meet an expected net deposit drain of +4 percent using stored liquidity management techniques?

• A)Liquidate all cash holdings.
• B)Utilize further the Fed funds market.
• C)Liquidate some securities and/or loans.
• D)Liquidate all cash and use more Fed funds.

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Definitions:

Plagioclase Feldspar

A group of common rock-forming silicate minerals that are significant components of many igneous rocks.

Potassium Feldspar

A very common silicate mineral that contains potassium; synonym: K-feldspar.

Meteorite

A solid piece of debris from an object, such as a comet, asteroid, or meteoroid, that originates in outer space and survives its passage through the Earth's atmosphere to reach the ground.

Nonsilicates

Minerals that do not contain silicon-oxygen tetrahedra, including classes like oxides, sulfides, and carbonates.