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Banks Can Move to Decrease Their Liquidity Risk by Having

Question 20

Multiple Choice

Banks can move to decrease their liquidity risk by having which of these combinations, to the extent it is manageable?


A) More long-term liabilities; fewer long-term assets
B) Fewer short-term liabilities; more frequent borrowing from the Fed
C) Fewer short-term liabilities; higher primary reserves
D) More short-term assets; higher primary reserves

Correct Answer:

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