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Question
Why have purchased liquidity management techniques become very popular in spite of its limitations?
A. Because it insulates the assets of an FI from normal drains on liability liquidity.
B. Because funds can be easily raised in the eventuality of a liquidity crunch.
C. Because of decrease in the cost of funds during periods of high interest rate volatility.
D. Because the funds are covered by deposit insurance.
E. Because the adjustment to the deposit drain occurs on the liability side of the balance sheet.
Answer
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Related questions
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C. earthquake and flood.
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E. product liability and farm owner multiple peril.
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The McCarran-Ferguson Act of 1945
A. separated commercial banking from insurance activities.
B. mandated federal insurance company charters.
C. stipulated that insurance companies are to be regulated at the state level.
D. initiated a national insurance guaranty fund.
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A. the expected payment commitment on existing policy contracts.
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A. Position trading.
B. Pure arbitrage.
C. Liquidity trading.
D. Risk arbitrage trading.
E. Program trading.
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A. has publicly-traded common stock.
B. provides equity funds to companies that already have publicly traded common stock.
C. is a subsidiary of a nonfinancial corporation.
D. provides debt funding to only to established corporations.
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Which of the following would be a key area of activity for an investment bank specializing in the commercial side of the business?
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