17-92 If the bank experiences a $50,000 sudden liquidity drain caused by a loan commitment draw down,what will be the impact on the balance sheet if stored liquidity management techniques are used?
A) A reduction in cash of $21,000 and an increase in demand deposits of $29,000.
B) A reduction in securities and/or current loans totaling $50,000.
C) A reduction in cash of $21,000 and a decrease in securities holdings of $29,000.
D) A decrease in equity of $50,000.
E) A decrease in lending of $50,000.
Correct Answer:
Verified
Q76: 17-81 What are the two major liquidity
Q77: 17-82 What is the drawback of deposit
Q78: 17-77 In terms of liquidity risk measurement,the
Q79: 17-73 Which of the following is a
Q80: 17-78 In a crisis,which of the following
Q82: 17-88 If the bank's expected net deposit
Q83: 17-94 What will be the cost of
Q84: 17-98 What are the bank's current total
Q85: 17-99 What is the net liquidity of
Q86: 17-90 What are the possible ways that
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents