A purchase fed funds b issue wholesale certificates

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A) Purchase fed funds B) Issue wholesale certificates of deposit C) Sell assets at fire-sale prices D) Sell notes or bonds E) Issue repurchase agreements 5 CORRECT Which of the following is NOT a characteristic of stored liquidity management? A) DIs still tend to hold excess cash reserves at the Federal Reserve B) The cost of using excess cash is the foregone return since cash is a non-earning asset C) The balance sheet will contract when the liquidity adjustment mechanism is used D) The balance sheet will expand when the liquidity adjustment mechanism is used E) The DIs can use assets other than cash to realize liquidity 6 CORRECT According to the net liquidity statement, a DI can obtain liquid funds from A) the sale of liquid assets. B) borrowing funds in the money/purchased funds market. C) any excess cash reserves available. D) All of the above are correct Course-wide Content Appendices Key URLs Errata Quizzes Multiple Choice Quiz More Resources Chapter Notation Home > Chapter 17 > Multiple Choice Quiz Multiple Choice Quiz ...
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  • One '09
  • YIP
  • DI, Multiple Choice Quiz

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