17-57 Which of the Following Statements Is NOT True

question 81

Multiple Choice

17-57 Which of the following statements is NOT true?

• A)Stored liquidity management involves liquidation of assets.
• B)Traditionally DIs have stored cash reserves at the Federal Reserve and in their vaults to overcome liquidity risk.
• C)When the DI uses its cash as the liquidity adjustment mechanism,both sides of its balance sheet contract.
• D)DIs hold cash reserves in excess of the minimum required to meet liquidity drains.
• E)Bank sustains no cost under stored liquidity risk management.

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