1. You are the bank's liquidity manager. If the variability of deposit inflows and outflows increases, the risk of illiquidity [A] and the cost of illiquidity [B]. Therefore, you can [C] the ESF buffer. As a result, your bank will provide [D] liquidity transformation for society.

A and B are

		did not change, less
		did not change, more
		decreased, less
		increased, did not change

2. You are the bank's liquidity manager. If the variability of deposit inflows and outflows increases, the risk of illiquidity [A] and the cost of illiquidity [B]. Therefore, you can [C] the ESF buffer. As a result, your bank will provide [D] liquidity transformation for society.

C and D are

		increase, more
		increase, the same
		decrease, more
		decrease, the same