When increasing liabilities to meet liquidity needs, a bank should consider all of the following except:
A)brokerage fees.
B)required reserves.
C)FDIC insurance premiums.
D)lost interest income.
E)A bank should consider all of the above when increasing liabilities to meet liquidity needs.

Question

Quizplus · Accepted Answer

Lost interest income is not a direct consideration when increasing liabilities to meet liquidity needs, as it pertains more to asset management and opportunity costs rather than the immediate costs or requirements associated with raising liabilities.

When Increasing Liabilities to Meet Liquidity Needs, a Bank Should