Multiple Choice
Which of the following results in a net liquidity drain?
A) Demand deposits increase $100; loans increase $50.
B) Demand deposits decrease $100; loan repayments are $150.
C) Repurchase agreements increase $100; demand deposits decrease $50.
D) Reverse repurchase agreements increase $50; demand deposits decrease $50.
E) None of these choices are correct.
Correct Answer:
Verified
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