An FI Can Manage a Drain on Deposits or an Exercise

question 32

True/False

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.

---

Definitions:

Acoustic-Blocking Model

A theoretical hypothesis suggesting interference in the processing of sounds or verbal information can impede learning or comprehension.

Retrieval

Retrieving and elevating stored information into one's consciousness from memory.

Encoding

The process by which information is transformed into a format that can be stored in memory, an initial step in the creation of a memory trace.

Storage

The retention of encoded information over time in memory.