Multiple Choice
Which of the following statements is true?
A) A positive financing gap means that the FI must fund it by using its cash and liquid assets or by raising funds in the money market.
B) A negative financing gap means that the FI must fund it by using its cash and liquid assets or by raising funds in the money market.
C) A positive financing gap means that the FI has excess liquidity.
D) A negative financing gap means that the FI is in need of liquidity.
Correct Answer:
Verified
Correct Answer:
Verified
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