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Question
When some of a bank's expected demand for liquidity are stored in its assets, while other unexpected cash needs are met from near-term borrowings, the approach to liquidity management is known as:
A. liability management.
B. asset conversion.
C. borrowed liquidity management.
D. balanced liquidity management.
E. None of the options is correct
Answer
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Related questions
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Which of the following adjustments are made to gross loans and leases to obtain net loans and leases?
A. Loan and lease loss allowance is added to gross loans.
B. Unearned income is subtracted from gross interest received.
C. Investment income is added to gross interest received.
D. Loan and lease loss allowance and unearned income is subtracted from gross loans.
E. Loan and lease loss allowance is subtracted from gross loans and investment income is added to gross interest received.
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B. three
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Which of the following would not be a telephone service that customers can get from a bank call center?
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B. A fax copy of a loan application to the bank
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A(n) _________________________ is an agreement between a buyer and a seller today which calls for the delivery of a particular security in exchange for cash at some future date for a set price.
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Maryellen Epplin notices that a particular T-Bill has a banker's discount rate of 9 percent in the Wall Street Journal. She knows that this T-Bill has 20 days to maturity and has a face value of $10,000.
What is the yield to maturity on this T-Bill?
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Which of the following would be an example of a repriceable asset?
A. Money the bank has borrowed from the money market
B. Cash in the vault
C. Demand deposits that do not pay interest
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A. deposits and non-deposit borrowings are not affected by changes in interest rates.
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The _______________ is determined by the demand and supply for loanable funds in the market.
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D. managerial hubris and sizeable merger premium that acquirers have to pay to shareholders of the acquired firms.
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