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In 2008, Many Banks Encounter Liquidity Issues and Experienced Deposit

Question 24

Multiple Choice

In 2008, many banks encounter liquidity issues and experienced deposit withdrawal or bank run. Which one of the following alternatives is an appropriate way to deal with deposit withdrawal?


A) Increasing in Euro dollar deposits
B) Contacting an investment banker to find new corporate deposits
C) Increasing Fed funds borrowed
D) Issuance of a negotiable CD
E) Selling the bank's holdings of T-bills
Refer to the information below for questions 6-8:
Formosa International Bank (FIB) (mill$)
In 2008, many banks encounter liquidity issues and experienced deposit withdrawal or bank run. Which one of the following alternatives is an appropriate way to deal with deposit withdrawal? A)  Increasing in Euro dollar deposits B)  Contacting an investment banker to find new corporate deposits C)  Increasing Fed funds borrowed D)  Issuance of a negotiable CD E)  Selling the bank's holdings of T-bills Refer to the information below for questions 6-8: Formosa International Bank (FIB)  (mill$)

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