Which of the Following Observations Is NOT True

question 96

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.
• E)None of the above.

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