Which of the Following Statements Is True

question 73

Multiple Choice

Which of the following statements is true?

• A)An FI can manage a drain on deposits or an exercise of a loan commitment in two major ways, these being purchased liquidity management and stored liquidity management.
• B)Traditionally, FI managers have relied on stored liquidity management as the primary mechanism of liquidity management.
• C)Today, there is a higher reliance on purchased liquidity management.
• D)All of the listed options are correct.

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Definitions:

Fiscal Period

A specific time period used for accounting purposes and financial reporting, typically a year, broken into quarters or months.

Depreciation

The systematic allocation of the cost of a tangible asset over its useful life, reflecting wear and tear, deterioration, or obsolescence.

Adjusting Entries

Journal entries made in accounting records at the end of an accounting period to update account balances before preparing financial statements.

Net Income

The residual financial benefit a company experiences after expenses and taxes are subtracted from its income.