Which of the following balance sheet entries is not a tool used in purchased liquidity management?
A)Bonds.
B)Federal fund.
C)Demand deposit.
D)Repurchase agreement.
E)Subordinated note.

Question

Quizplus · Accepted Answer

Demand deposits are a liability on the balance sheet and represent the amount of money a bank owes to its depositors. They are not a tool used in purchased liquidity management, which involves acquiring funds through the financial markets or other external means to manage liquidity. Tools for purchased liquidity management include bonds, federal funds, repurchase agreements, and subordinated notes, which are ways a bank can obtain or manage its liquidity through borrowing or financial instruments.

Which of the Following Balance Sheet Entries Is Not a Tool