One of the problems with liquidity management for a bank is that rarely does the demand for funds equals the supply of funds at a given time.

Question

Quizplus · Accepted Answer

Liquidity management involves balancing the demand for funds (withdrawals, loan requests, etc.) with the supply of funds (deposits, investments, etc.). However, it is rare that these two factors will be perfectly balanced at any given time, which is one of the challenges of liquidity management for banks.

One of the Problems with Liquidity Management for a Bank