A Disadvantage of Using Purchased Liquidity Management to Manage a FI's

Multiple Choice

A disadvantage of using purchased liquidity management to manage a FI's liquidity risk is

A) the resulting shrinkage of the FI's balance sheet.
B) the relatively high cost of purchased liabilities.
C) the accessibility of international money markets.
D) tax considerations.
E) loss of flexibility as a result of dependence upon purchased liabilities.