What Are the Possible Ways That the Bank Can Meet

Multiple Choice

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 options are suitable techniques.