How do banks manage liquidity, Financial Management

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How do banks manage liquidity

How do banks manage liquidity risk?

A. Banks manage this risk by keeping some funds very liquid, such as in the federal funds market.

B. Banks can increase their assets to cover liquidity risk.

C. Banks manage this risk by keeping some funds very liquid, such as a reverse repurchase agreement.

D. Banks can increase their borrowings to cover liquidity risk.

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Financial Management: How do banks manage liquidity

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