What are the possible ways that the bank can meet an expected net deposit drain of +4 percent using stored liquidity management techniques?
A. Liquidate all cash holdings.
B. Utilize further the Fed funds market.
C. Liquidate some securities and/or loans.
D. Liquidate all cash and use more Fed funds.
E. All of the above are suitable techniques.
Ans: C. Liquidate some securities and/or loans.
Business
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