A Disadvantage of Using Liability Management to Manage an FI's

question 11

Multiple Choice

A disadvantage of using liability management to manage an FI's liquidity risk is:

• A)the resulting shrinkage of the FI's balance sheet
• B)the high cost of purchased liabilities
• C)the accessibility of international money markets
• D)loss of flexibility as a result of dependence upon purchased liabilities

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Definitions:

Sexual Instincts

Fundamental driving forces in Freudian psychology associated with survival and reproduction, influencing human behavior by seeking pleasure and avoiding pain.

Modern Psychology

The scientific study of the mind and behavior, incorporating contemporary theories and methodologies to understand psychological phenomena.

Sigmund Freud

An Austrian neurologist and the founder of psychoanalysis, a clinical method for treating psychopathology through dialogue between a patient and a psychoanalyst.

Sexual Conflicts

Internal or interpersonal struggles related to sexual desire, orientation, or expression.