If Stored Liquidity Is Used by a DI to Fund

question 10

Multiple Choice

If stored 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.
• E)there will be no effect on the balance sheet.

---

Definitions:

Tendency

An inclination towards a particular characteristic, behavior, or outcome, often influenced by inherent traits or external factors.

Structured Rules

Clearly defined directives or procedures that govern actions and decision-making within an organization or system.

Group Decision-making

The process whereby a group of individuals comes together to make a decision, often incorporating a variety of perspectives and reaching a consensus.

Prioritizing Ideas

The process of arranging ideas in order of importance or urgency to facilitate decision-making and focus.