Sources of liquidity for banks include:
A)deposit inflows.
B)money market borrowings.
C)sale of marketable securities.
D)repayments of loans disbursed.
E)All of the options are correct.

Question

Quizplus · Accepted Answer

All of the options mentioned are sources of liquidity for banks. Deposits are the primary source of funding for banks, and money market borrowings allow banks to borrow short-term funds from other financial institutions. The sale of marketable securities provides banks with cash, and repayments of loans disbursed also provide liquidity to banks. Therefore, all of the options are correct.

Sources of Liquidity for Banks Include