A manager that examines the bank's stock price behavior and risk premium on the CDs to measure liquidity position is using:
A)the sources and uses of funds approach.
B)the structured funds approach.
C)the liquidity indicator approach.
D)signals from the marketplace.
E)None of the options is correct.

Question

Quizplus · Accepted Answer

Examining the bank's stock price behavior and risk premium on CDs to measure liquidity position involves analyzing external market signals. These signals from the marketplace provide insights into how investors view the bank's liquidity and financial health.

A Manager That Examines the Bank's Stock Price Behavior and Risk