Storing Liquidity in Bank Assets

The principal option open to bank managers for holdings of liquid assets that can be sold when additional cash is needed are, 

Tresury Bills-direct obligation of the United States government or of foriegn governments issued at a discount and redeemed at face value when they reach to maturity; T-bills have original maturities of 3,6 and 12 months, with an active resale market through security dealers.

Fedral funds loans to other institutions-loanof bank reserves with short maturities.

Purchase of liquid securities under a repurchase agreement(RP)- using high- quality securities as collateral to secure loans from dealers and other lending institutions.

Placing of correspondent deposits with other banks-these interbank deposits can be borrowed or loaned in minutes by telephone or by wire.

Municipal bonds and notes-debt securities issued by state and local government that range in maturity from a few days to several years.

Federal agency securities-short-and long-term debt instruments sold by federally sponsored agencies such as FNMA(Fannie Mae).

Eurocurrency loans-the lending of deposits accepted by banks and bank branches located outside a particular currency's home country for periods stretching from a few days to a few months.