If Purchased Liquidity Is Used by a DI to Fund

question 53

Multiple Choice

If purchased liquidity is used by a DI to fund an exercised loan commitment

• A)the balance sheet will decrease by the amount of the new loan.
• B)only the asset side of the balance sheet will increase.
• C)the balance sheet will increase by the amount of the new loan.
• D)only the liability side of the balance sheet will increase.

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