Which of the Following Statements Is NOT True

Multiple Choice

Which of the following statements is NOT true?

A) Stored liquidity management involves liquidation of assets.
B) Traditionally DTIs have stored cash reserves at the Federal Reserve and in their vaults to overcome liquidity risk.
C) When the DTI uses its cash as the liquidity adjustment mechanism, both sides of its balance sheet contract.
D) DTIs hold cash in excess of the minimum required to meet liquidity drains.
E) A DTI sustains no cost under stored liquidity risk management.