Which of the following is a guideline for liquidity managers of banks?
A)A liquidity manager must keep track of activities of all departments of the bank
B)A liquidity manager must know in advance (if possible)the plans of major creditors and depositors
C)A liquidity manager should make sure the bank has clear priorities and objectives for liquidity management
D)A liquidity manager must analyze the liquidity needs of the bank on a continuous basis
E)All the options are guidelines for liquidity managers

Question

Quizplus · Accepted Answer

All of the options listed are guidelines for liquidity managers of banks. A liquidity manager must keep track of all activities within the bank to effectively manage liquidity, they must have knowledge of the plans of major creditors and depositors, and they must continuously analyze the liquidity needs of the bank. Additionally, it is important for the liquidity manager to ensure that the bank has clear priorities and objectives for liquidity management.

Which of the Following Is a Guideline for Liquidity Managers