A bank is said to have enough liquidity if ________.
A) it holds deposits amounting to at least $100,000
B) it operates more than 12 hours a day for 7 days a week
C) the value of its assets exceeds the value of its liabilities by at least $50,000
D) it has enough funds to conduct its day-to-day businesses and meet regulatory requirements

Question

Quizplus · Accepted Answer

Having enough liquidity means that the bank has enough funds readily available to conduct its day-to-day businesses, such as deposit withdrawals and loan disbursements, and also meet regulatory requirements such as maintaining a certain level of reserves. Option A, B, and C do not relate to liquidity directly.

A Bank Is Said to Have Enough Liquidity If ________