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What does a relatively low ratio of loans to deposits indicate? Group of answer choices a.Depository institution relies relatively less heavily on core deposits to

What does a relatively low ratio of loans to deposits indicate?

Group of answer choices

a.Depository institution relies relatively less heavily on core deposits to fund loans, therefore it is exposed to higher liquidity risk.

b.Depository institution relies relatively less heavily on borrowed funds to fund loans, therefore it is exposed to higher liquidity risk.

c.Depository institution has large amounts of asset-side liquidity.

d.Depository institution relies relatively less heavily on borrowed funds to fund loans, therefore it is exposed to lower liquidity risk.

e.Depository institution has low levels of asset-side liquidity.

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