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What stored liquidity is used by a bank to fund net deposit

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Reference no: EM132564265

Question 1: If stored liquidity is used by a bank to fund a net deposit drain of funds:

1. only the asset side of the balance sheet will decrease.

2. the balance sheet will decrease by the amount of the net deposit drain of funds.

3. only the liability side of the balance sheet will decrease.

4. the size of the bank's balance sheet will remain the same

5. the balance sheet will increase by the amount of the net deposit drain of funds.

Reference no: EM132564265

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