17-54 Which of the Following Observations Is NOT True

question 74

Multiple Choice

17-54 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 liability 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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Definitions:

Unsold Unit

A product unit that remains unsold after being offered to the market, representing a missed revenue opportunity.

Production Methods

Various approaches and techniques used in the creation of goods and services, including mass production, batch production, and custom production.

Unpredictable Demand

A market condition where the desire for products or services cannot be accurately forecasted due to variability in consumer behavior, trends, or external factors.

Stable Demand

Relates to a market condition where the desire for a product or service remains relatively constant over time.