Stored liquidity management is an asset-side adjustment to the balance sheet to cover a deposit drain

Name: Stored liquidity management is an asset-side adjustment to the balance sheet to cover a deposit drain
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Question

Quizplus · Accepted Answer

Stored liquidity management involves holding liquid assets on the asset side of the balance sheet in order to cover potential deposit outflows, thereby ensuring sufficient liquidity levels to meet operational requirements.

Stored Liquidity Management Is an Asset-Side Adjustment to the Balance