Question
In: Finance
Which of the following is NOT a primary source of liquidity? Select one: A. Cash-type assets...
Which of the following is NOT a primary source of liquidity?
Select one:
A. Cash-type assets that can be sold with little price risk and low transaction costs.
B. Capital notes and other long-term financing alternatives.
C. Borrowings in the money market.
D. Borrowings in the purchased funds market.
E. Excess cash reserves over and above regulatory reserve requirements.
Solutions
Expert Solution
Answer is B
Capital notes and other long-term financing alternatives are considered for long term financing however for liquidity purpose cost effective and short term assets are released.
All other options provided are short term in nature and therefore can be used for enhancing short term liquidity.
jeff jeffy answered 1 year agoRelated Solutions
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