As part of its liquidity management, a bank might:

Question

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Issuing commercial paper is a common strategy for banks to manage their liquidity. Commercial paper is a short-term debt instrument that can be sold to investors to raise cash quickly. By issuing commercial paper, banks can access funds that can be used to meet short-term obligations or address unexpected changes in their cash position. While interest rate swaps and long-term Treasury securities can be part of a bank's overall portfolio management strategy, they are not necessarily specific to liquidity management.

As Part of Its Liquidity Management, a Bank Might