For a DI, what does a high ratio of loans to deposits indicate?
A. DI relies heavily on the short-term money market to fund loans.
B. High degree of loan commitments.
C. DI has large amounts of asset-side liquidity.
D. Liquidity concerns are at a bare minimum for the FI.
E. DI relies heavily on core deposits to fund loans.
Ans: A. DI relies heavily on the short-term money market to fund loans.
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