A manager that looks at loans and deposits increases and decreases among other things to measure the bank's 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

The sources and uses of funds approach involves analyzing increases and decreases in loans and deposits, among other factors, to assess a bank's liquidity position. This method helps in understanding how funds flow into and out of the bank, which is crucial for liquidity management.

A Manager That Looks at Loans and Deposits Increases and Decreases