Which of the Following Observations Is NOT True

question 3

Multiple Choice

Which of the following observations is NOT true?

• A)Traditionally,DI managers have relied on purchased liquidity management as the primary mechanism of liquidity management.
• B)Today,many DIs rely on purchased liquidity management to deal with the risk of cash shortfalls.
• C)The largest banks with access to the money market and other nondeposit markets for funds rely on purchased liquidity management to deal with the risk of cash shortfalls.
• D)Purchased liquidity management and stored liquidity management are ways of managing a drain on deposits.

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Definitions:

Perceptual Defense

The process of failing to perceive stimuli that an individual might find disturbing or threatening.

Object Relations Theory

A psychoanalytic theory focusing on relationships and the attachments formed between individuals, especially between a child and significant others.

Psychotherapy

A treatment method for mental health conditions and emotional distress, using psychological techniques to encourage communication and insight.

Defense Mechanisms

Psychological strategies employed unconsciously by individuals to protect themselves from anxiety and to cope with reality or maintain self-image.