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How Does Purchased Liquidity Management Affect Profitability

Question 37

Multiple Choice

How does purchased liquidity management affect profitability?


A) By its impact on the interest rate sensitivity of assets.
B) By its impact on the interest rate sensitivity of liabilities.
C) By determining the default risk of investment securities.
D) By its impact on the cost of purchased funds.
E) By enhancing the liquidity of assets held.

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