Question
Which of the following instruments is commonly used by
banks to manage short-term liquidity needs?Solution
Banks use various instruments for short-term liquidity management: ο· Treasury Bills (T-Bills) β Issued by the government for short-term borrowing. ο· Certificates of Deposit (CDs) β Fixed-term deposits issued by banks. ο· Commercial Paper (CPs) β Unsecured promissory notes issued by companies. ο· Repo Agreements (Repurchase Agreements) β Short-term borrowing against securities.
More Financial Management Questions
40.5 ÷ [4/5 of (32 + 18) - 29/2] = ? ÷ 102
(1/2) β (3/5) + 3(1/3) = ? + (5/6)
(350/?) = 23 + 33
25% of 250 + 32% of 200 = ? Γ· β 16
? = 20% of 1200 + 256
21% of 400 β 150 = ? β 77
172Β - 92Β + 121 - 74 = ?
24% of 150% of 500 + 140 = ? Γ 8Β
(22² × 8²) ÷ (92.4 ÷ 4.2) =? × 32
? = 65% of 40% of (20 Γ 250) β 200
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