Question

Which of the following rankings of liabilities is correct if they are ranked by withdrawal risk from riskiest to least risky?

A. Federal funds; demand deposits; certificates of deposit.

B. Demand deposits; money market demand accounts; certificates of deposit.

C. Repurchase agreements; money market demand accounts; certificates of deposit.

D. Certificates of deposit; federal funds; demand deposits.

E. Passbook savings accounts; money market demand accounts; certificates of deposit.

Answer

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