If banks\' fragility arises from the fact that they provide liquidity to deposit

Question

If banks' fragility arises from the fact that they provide liquidity to depositors, as a bank manager, how might you reduce the fragility of your institution? Instructions: In order to receive full credit, you must make a selection for each option. For correct answer(s), click the box once to place a check mark. For incorrect answer(s), click the option twice to empty the box. Hold a lower portion of assets in the form of liquid securities Reduce demand deposits as a percentage of liabilities 2Increase the excess reserves you hold on the asset side of the balance sheet. Increase time deposits.

Explanation / Answer

Ans Increase the excess reserves you hold on the asset side of the balance sheet.

All other options are incorrect.

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