1. You are the bank's liquidity manager. If the yield on non-liquid assets increases, the risk of illiquidity [A] and the cost of illiquidity [B]. Therefore, it makes sense to [C] the ESF buffer. As a result, your bank will provide [D] liquidity transformation for society.

C and D are

		increase, less
		increase, more
		decrease, more
		decrease, less

You are the bank's liquidity manager. If the liquidation cost of highly non-liquid assets decreases, the risk of illiquidity [A] and the cost of illiquidity [B]. Therefore, it you can [C] the ESF buffer. As a result, your bank will provide [D] liquidity transformation for society.

C and D are

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