The two most pressing demands for liquidity from a bank come from,first,customers withdrawing their deposits and,second,from:
A)credit requests from customers the bank wishes to keep.
B)checks being cashed at local stores and directly from the bank.
C)demands for wired funds from correspondent banks.
D)legal reserve requirements set by the Federal Reserve Board.
E)None of the options is correct.

Question

Quizplus · Accepted Answer

Banks need liquidity to meet credit requests from customers they wish to retain, as maintaining good customer relationships is crucial for their business.

The Two Most Pressing Demands for Liquidity from a Bank