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Describe the objectives involved in the management of a bank's overall liquidity position and the costs to the bank of poor liquidity management. In your discussion, identify the major sources of demand on a bank's liquidity position, including reserve requirements, and the major sources of funds to meet liquidity needs. As part of your discussion, consider how the predictable fluctuations in loan demand and deposit flows can cause changing liquidity needs and how a bank might anticipate such changes

Basic Finance, Finance

  • Category:- Basic Finance
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