What are some of the ways that banks can borrow short-term funds when they need "liquidity"? (Select all that apply; three of the answers below are correct.) Reference: Chapters 11 & 12 They can borrow directly from the Securities & Exchange Commission through the "regulatory" market. They can borrow from the Department of Treasury through the "Treasury" window. They can borrow another bank's reserves through the "fed funds" market. The can engage in a "sale & repurchase agreement" (or "repo") by selling some of their securities to another financial insitution and promising to buy them back the next day. They can borrow directly from the Federal Reserve through the "discount window"
What are some of the ways that banks can borrow short-term funds when they need "liquidity"? (Select all that apply; three of the answers below are correct.) Reference: Chapters 11 & 12 They can borrow directly from the Securities & Exchange Commission through the "regulatory" market. They can borrow from the Department of Treasury through the "Treasury" window. They can borrow another bank's reserves through the "fed funds" market. The can engage in a "sale & repurchase agreement" (or "repo") by selling some of their securities to another financial insitution and promising to buy them back the next day. They can borrow directly from the Federal Reserve through the "discount window"
Chapter16: Working Capital Policy And Short-term Financing
Section: Chapter Questions
Problem 24QTD
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What are some of the ways that banks can borrow short-term funds when they need "liquidity"?
(Select all that apply; three of the answers below are correct.)
Reference: Chapters 11 & 12
They can borrow directly from the Securities & Exchange Commission through the "regulatory" market.
They can borrow from the Department of Treasury through the "Treasury" window.
They can borrow another bank's reserves through the "fed funds" market.
The can engage in a "sale & repurchase agreement" (or "repo") by selling some of their securities to another financial insitution and promising to buy them back the next day.
They can borrow directly from the Federal Reserve through the "discount window".
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