Why have purchased liquidity management techniques become very popular in spite of its limitations?
A) Because it insulates the assets of an FI from normal drains on liability liquidity.
B) Because funds can be easily raised in the eventuality of a liquidity crunch.
C) Because of decrease in the cost of funds during periods of high interest rate volatility.
D) Because the funds are covered by deposit insurance.
Correct Answer:
Verified
Q62: Which of the following statements is NOT
Q63: How does purchased liquidity management affect profitability?
A)By
Q66: Which of the following balance sheet entries
Q67: The surrender value of an insurance policy
Q69: Which of the following is NOT a
Q70: A disadvantage of using purchased liquidity management
Q71: Which of the following is NOT used
Q71: Which intermediation function results in an FI's
Q72: An open-end bond mutual fund is holding
Q73: A disadvantage of using stored liquidity management
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents