When selling securities to meet liquidity needs, a bank should consider all of the following except:

Question

Quizplus · Accepted Answer

All of the options listed (brokerage fees, lost interest income, gains or losses on securities, and impact on taxes) should be considered when selling securities to meet liquidity needs. This will ensure that the bank can make an informed decision and minimize any negative impacts on their financial situation.

When Selling Securities to Meet Liquidity Needs, a Bank Should