1) Which of the following would a bank not hold as insurance against the highest cost of deposit outflow bank failure?
A) Excess reserves
B) Secondary reserves
C) Bank capital
D) Mortgages
2) Which of the following has not resulted from more active liability management on the part of banks?
A) Increased bank holdings of cash items
B) Aggressive targeting of goals for asset growth by banks
C) Increased use of negotiable CDs to raise funds
D) An increased proportion of bank assets held in loans
3) Banks that actively manage liabilities will most likely meet a reserve shortfall by
A) calling in loans.
B) borrowing federal funds.
C) selling municipal bonds.
D) seeking new deposits.