The money market approach to liquidity management results in all of the following EXCEPT:
A) avoids securities transactions costs
B) helps maintain capital reserves
C) avoids price risk
D) provides interest revenues

Question

Quizplus · Accepted Answer

The money market approach to liquidity management does not avoid securities transactions costs. In fact, engaging in short-term borrowing or lending in the money markets often incurs such costs. The approach does help maintain capital reserves, avoid price risk, and provide interest revenues, but it does not avoid the costs associated with buying and selling securities.

The Money Market Approach to Liquidity Management Results in All