Which of the Following Is Not Considered a Viable Long-Term

question 19

Multiple Choice

Which of the following is not considered a viable long-term source of bank liquidity?

• A) Federal funds sold
• B) Short-term Treasury securities
• C) Cash
• D) High quality short-term municipal securities
• E) Reverse repurchase agreements

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Definitions:

Money Supply

Money Supply refers to the total amount of monetary assets available in an economy at any specific time, including cash, coins, and balances held in checking and savings accounts.

M Rises

This term is unclear without context, but could refer to an increase in a specific variable "M" in mathematical, economic, or other models.

Percentage Rise

A measure of how much a quantity increases over a period, expressed as a percentage of the initial value.

Equation of Exchange

An economic formula representing the relationship between the money supply, its velocity, the price level, and the number of transactions in an economy: MV = PQ.