Which of the following statements is true?
A)Bank accepted bills classify as purchased liquidity.
B)Loans to short-term money market dealers classify as purchased liquidity.
C)Securities sold under agreements to repurchase classify as stored liquidity.
D)Certificates of deposits classify as stored liquidity.

Question

Quizplus · Accepted Answer

Certificates of deposits are considered as stored liquidity instruments as they cannot be easily converted into cash and have a fixed maturity date. Option A is incorrect because Bank accepted bills are considered as stored liquidity instruments. Option B is incorrect because loans to short-term money market dealers are considered as contingent liquidity instruments. Option C is incorrect because securities sold under agreements to repurchase are considered as contingent liquidity instruments.

Which of the Following Statements Is True