Multiple Choice
Which of the following statements is true?
A) DEAR acknowledges that an FI can sell all its bonds tomorrow, as markets are entirely liquid.
B) DEAR assumes that an FI cannot sell all its bonds tomorrow, although in reality this might be possible.
C) DEAR assumes that an FI can sell all its bonds tomorrow, although in reality it might take many days for the FI to unload its position.
D) DEAR acknowledges that an FI cannot sell all its bonds tomorrow, but that instead it might take many days for the FI to unload its position.
Correct Answer:

Verified
Correct Answer:
Verified
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