What are the possible ways that the bank can meet an expected net deposit drain of +4 percent using stored liquidity management techniques?
A)Liquidate all cash holdings.
B)Utilize further the Fed funds market.
C)Liquidate some securities and/or loans.
D)Liquidate all cash and use more Fed funds.

Question

Quizplus · Accepted Answer

Stored liquidity management involves converting liquid assets like securities or loans into cash to meet deposit drains.

What Are the Possible Ways That the Bank Can Meet