Which actions by banks ensure that reserves are adequate to cover deposit outflows?   A. Customer relations managment   B. Asset management   C. Liquidity management   D. Liability management

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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QUESTION 1

  1. Which actions by banks ensure that reserves are adequate to cover deposit outflows?

      A.

    Customer relations managment

      B.

    Asset management

      C.

    Liquidity management

      D.

    Liability management

Expert Solution
Step 1

Deposit outflow is the process when an individual or depositor withdraws money from their account or when the demand for payment if made to the bank and they need cash to make the payment which leads to decrease in the deposits managed by the bank. 

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