QUESTION 22 Liquidity is the ability to meet cash flow needs on a timely basis a

Question

QUESTION 22

Liquidity is the ability to meet cash flow needs on a timely basis at a reasonable cost.

True

False

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QUESTION 23

Base your answers to the following question on the latest 10-K filed by Dime Community Bancshares (ticker symbol DCOM)

Dime Community Bancshares is required by the Federal Reserve institutions to maintain cash reserves against their transaction accounts. These reserves do not satisfy the liquidity requirements imposed by the Federal Reserve.

True

False

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QUESTION 24

Base your answers to the following question on the latest 10-K filed by Dime Community Bancshares (ticker symbol DCOM)

The FDIC does not regulate bank liquidity on credit risk.

True

False

Reserve Banks of the Federal Reserve System of the United States provide accounts to depository institutions--banks, thrifts, and credit unions--in which those institutions hold reserve balances, make loans to depository institutions, move currency and coin into and out of circulation, collect and process millions of checks and other payments each day, provide checking accounts and other services for the Treasury, issue and redeem government securities, and act in other ways as fiscal agent for the U.S. government.

True

False

Explanation / Answer

Answer 22 :- It is true as liquidity is showing the cash and cash equivalents. cash equivalents are those which can be very easily converted to cash

Answer 23 :- False

Answer 24 :- False This statement is false because FDIC regulates bank liquidity on credit risk

Answer 25 :- True This statement is properly correct because Reserve Banks of the Federal Reserve System of the United States provide accounts to depository institutions--banks, thrifts, and credit unions onlt to those institutions which hold reserves balances make loan , collect checks etc..

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