Liquidity deficit would arise when a) demand for liquidity is more than supply of liquidity b) demand for liquidity is less than supply of liquidity c) a bank experiences a sudden inflow of deposits d) a bank experiences a heavy repayment of loans e) None of the above Customer loan repayments would normally result in: 1. Reduction in liquid assets held by the bank 2. Supply of liquid funds to the bank 3. Demand for liquidity 4. None of the above A strategy where a bank deals with liquidity deficits by selling marketable securities for cash to meet the demand for cash is called: 1. Purchased liquidity strategy 2. Asset conversion strategy 3. Liability Management strategy 4. Borrowed liquidity strategy 5. None of the above A strategy where a bank deals with liquidity deficits through borrowings from the money market is called 1. Asset liquidity strategy 2. Balanced liquidity strategy 3. Liability management strategy 4. Asset conversion strategy 5. None of the above The sources and uses of funds approach is based on : 1. Estimating the liquidity gap by calculating change in deposits minus change in loans 2. Estimating liquidity gap by calculating the difference between total deposits and total loans 3. Estimating the liability liquidity reserve based on certain percentage of hot money deposits plus vulnerable deposits plus stable deposits 4. Estimating various liquidity indicators such as cash position indicator, liquid securities indicator, deposit composition ratio elc. 5. None of the above Structure of Funds Approach is based on : 1. Estimating the liquidity gap by calculating change in deposits minus change in loans 2. Estimating liquidity gap by calculating the difference between total deposits and total loans 3. Estimating the liability liquidity reserve (based on a certain percentage of hot money deposits plus vulnerable deposits plus stable deposits) plus loan liquidity requirement 4. Estimating various liquidity indicators such as cash position indicator, liquid securities indicator, deposit composition ratio etc