Multiple Choice
-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.
E) All of the above are suitable techniques.
Correct Answer:
Verified
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