Nontransactions accounts such as bank cd

Reference no: EM13343000

Consider the following statement from a bank manager:

"Recent innovations allow us to rely less on checkable deposits and more on nontransactions accounts such as bank CDs. Although such accounts are desirable because they are less liquid from the depositors' point of view, we must draw customers to these accounts by paying higher interest rates. We must raise funds without incurring too much cost in terms of interest paid to our customers."

What type of balance sheet management does this manager describe?
A. Liquidity management
B. Capital adequacy management
C. Liability management
D. Asset management

Reference no: EM13343000

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