Due to the inherent risks in relying on borrowed liquidity and costs of storing liquid assets,most financial firms compromise by using:
A)asset management.
B)liability management.
C)balanced liquidity management.
D)asset and liability management.
E)All the options are correct.

Question

Quizplus · Accepted Answer

Balanced liquidity management involves managing both assets and liabilities to ensure sufficient liquidity while minimizing costs and risks associated with borrowing and storing liquid assets.

Due to the Inherent Risks in Relying on Borrowed Liquidity