Which of the Following Statements Is True

question 60

Multiple Choice

Which of the following statements is true?

• A)The stock of liquid assets held in an FI's balance sheet will depend on the FI's willingness to trade off liquidity against returns and on its ability to use purchased liquidity.
• B)The stock of liquid assets held in an FI's balance sheet will depend on the FI's willingness to trade off liquidity against returns but not on its ability to use purchased liquidity.
• C)The stock of liquid assets held in an FI's balance sheet will not depend on the FI's willingness to trade off liquidity against returns; it will depend, however, on its ability to use purchased liquidity.
• D)The stock of liquid assets held in an FI's balance sheet will neither depend on the FI's willingness to trade off liquidity against returns, nor on its ability to use purchased liquidity.

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Definitions:

Demands

Demands consist of the needs or desires that individuals or groups assert with the expectation of fulfillment.

Corporate Policy

Guidelines and rules established by a business or corporation to govern its operations, employee conduct, and ethical standards.

Paid Labor Force

Individuals who are employed and receive compensation for their work or services.

Economic Sociology

A branch of sociology that examines economic phenomena including markets, exchange, and capital systems.