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    Financial Markets and Institutions Study Set 1
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    Exam 21: Managing Liquidity Risk on the Balance Sheet
  5. Question
    If a Bank Meets a Net Deposit Drain by Borrowing
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If a Bank Meets a Net Deposit Drain by Borrowing

Question 26

Question 26

True/False

If a bank meets a net deposit drain by borrowing money in the fed funds market,it is using purchased liquidity.

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