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Question
How does reliance on purchased liquidity rather than core deposits affect a bank?
I. Increases the risk of a liquidity crisis
II. Allows the bank to adjust to deposit drains without affecting bank size
III. Increases overall interest sensitivity of the bank's profits to interest rates
A. I only
B. II only
C. I and II only
D. II and III only
E. I, II, and III
Answer
This answer is hidden. It contains 1 characters.
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