Trend liquidity planning calculates an FI's liquidity need as the simple difference between the FI's liquid assets and its volatile sources of funds.

Question

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Trend liquidity planning calculates an FI's liquidity need as the difference between its expected cash inflows and outflows over a given time period, taking into account the potential impact of various scenarios on these flows. It does not simply rely on the difference between liquid assets and volatile sources of funds.

Trend Liquidity Planning Calculates an FI's Liquidity Need as the Simple