Multiple Choice
FIs are particularly vulnerable to sudden and unexpected demand for funds.Liquidity regulations are imposed for all of the following reasons, except to:
A) ensure that authorised DIs have sufficient liquidity
B) prevent liquidity problems and possible contagion effects that may spread to other FIs
C) increase liquidity for prudential management
D) ensure that authorised DIs have sufficient capital
Correct Answer:
Verified
Correct Answer:
Verified
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