Which of the following has NOT resulted from more active liability management on the part of banks?
A)increased bank holdings of cash items
B)aggressive targeting of goals for asset growth by banks
C)increased use of negotiable CDs to raise funds
D)an increased proportion of bank assets held in loans

Question

Quizplus · Accepted Answer

More active liability management by banks typically involves strategies to manage their liabilities more aggressively to meet certain financial goals, such as improving liquidity or funding asset growth. This often includes the use of negotiable CDs to raise funds (C), targeting asset growth (B), and increasing the proportion of assets held in loans (D) to generate higher returns. Increased bank holdings of cash items (A) would not be a result of more active liability management, as this approach generally focuses on reducing holdings in cash and other non-earning assets to improve financial performance.

Which of the Following Has NOT Resulted from More Active