Which of the following is not considered a viable long-term source of bank liquidity?
A) Federal funds sold
B) Short-term Treasury securities
C) Cash
D) High quality short-term municipal securities
E) Reverse repurchase agreements

Question

Quizplus · Accepted Answer

While cash is an important component of a bank's liquidity, it is not considered a long-term source of liquidity. The other options listed - federal funds sold, short-term Treasury securities, high quality short-term municipal securities, and reverse repurchase agreements - are all viable long-term sources of bank liquidity.

Which of the Following Is Not Considered a Viable Long-Term