Why have purchased liquidity management techniques become very popular in spite of its limitations?

a.

Because the adjustment to the deposit drain occurs on the liability side of the balance sheet.

b.

Because funds can be easily raised in the eventuality of a liquidity crunch.

c.

Because the funds are covered by deposit insurance.

d.

Because they insulate the assets of an FI from normal drains on liability liquidity.

e.

Because of decrease in the cost of funds during periods of high-interest rate volatility.