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Which one of the following statements is TRUE? Select one: a. Loans to short-term money market dealers classify as purchased liquidity b. Reliance on purchased
Which one of the following statements is TRUE? Select one: a. Loans to short-term money market dealers classify as purchased liquidity b. Reliance on purchased or borrowed funds will largely eliminate the liquidity risk faced by a bank. c. Higher liquidation costs of non-liquid assets discourages a bank from holding more liquid assets d. None of the statements are true. e. A decrease in the yield of non-liquid assets will reduce holdings of liquid assets
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