Which of the Following Results in a Net Liquidity Drain

question 7

Multiple Choice

Which of the following results in a net liquidity drain?

• A)Demand deposits increase $100; loans increase $50.
• B)Demand deposits decrease $100; loan repayments are $150.
• C)Repurchase agreements increase $100; demand deposits decrease $50.
• D)Reverse repurchase agreements increase $50; demand deposits decrease $50.
• E)None of these choices are correct.

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Definitions:

Cycloalkanes

Saturated, ring-shaped hydrocarbons with the general formula CnH2n, where n is the number of carbon atoms in the ring.

Trans-1,4-Dipropylcyclohexane

A chemical compound featuring a cyclohexane ring with propyl groups attached at the 1 and 4 positions in a trans configuration.

Stable Conformation

The spatial arrangement of atoms in a molecule that is energetically favorable and has lower internal strain.

Cis-1,4-Dipropylcyclohexane

A cyclohexane derivative where two propyl groups are positioned on the same side of the cyclohexane ring at the 1st and 4th positions.