By holding highly liquid assets to guard against sudden large withdrawals,banks
A) sacrifice safety
B) sacrifice profitability
C) increase profitability
D) hold less cash in their vaults
E) earn more interest than they could on business loans
Correct Answer:
Verified
Q44: Banks differ from other types of businesses
Q103: The liquidity of an asset
A)describes the ease
Q104: Banks want to minimize their holdings of
Q105: If at the end of the business
Q107: The ability to convert a store of
Q109: A bank can increase the money supply
Q110: To maximize its profit,a bank will
A)minimize actual
Q111: The liquidity of an asset indicates
A)its buying
Q112: Liquidity contributes to the bank's achievement of
Q113: A bank manager who wants to increase
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