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.

---

Definitions:

Behavioral Stability

Consistency in patterns of action or behavior over time, reflecting a person's or group's predictability and reliability.

R&D Organization

An organization primarily focused on research and development activities aimed at the creation of new products, services, or processes.

Performance Declined

A situation where the level of effectiveness, productivity, or efficiency of an individual or group decreases compared to a previous period.

Working Together

refers to the collaborative effort of two or more individuals aiming to achieve a common goal by pooling their skills and resources.