17-32 Liquidity planning should identify the size of potential deposit withdrawals over various time horizons in the future,as well as alternative emergency private funding sources to meet those withdrawals.

Question

Quizplus · Accepted Answer

Liquidity planning is an essential aspect of financial management, and it involves anticipating potential cash outflows in the future and ensuring that appropriate sources of funding are available to meet those obligations. In this context, it is crucial to identify the size and timing of potential deposit withdrawals and to explore alternative funding sources that can be tapped in case of emergencies. Therefore, the statement is true and reflects a best practice in liquidity planning.

17-32 Liquidity Planning Should Identify the Size of Potential Deposit