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The Liquidity Gained Through Liability Management Is Useful to a Bank

Question 44

Multiple Choice

The liquidity gained through liability management is useful to a bank because:


A) it can be used to counteract deposit outflows.
B) it can be used to meet increases in loan demand by the bank's customers.
C) it allows banks to engage in more off-balance-sheet activities.
D) all of the above.

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