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If a Bank Relies Solely on Purchased Liquidity,the Bank Will

Question 31

Multiple Choice

If a bank relies solely on purchased liquidity,the bank will likely


A) maintain large amounts of liquid assets.
B) fund its loan commitments with asset sales.
C) be required to borrow money at short notice.
D) be required to raise equity capital quickly.
E) be forced to liquidate liabilities at fire-sale prices.

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