Question: Banks sometimes manage liquidity risk by issuing large marketable certificates
Banks sometimes manage liquidity risk by issuing large, marketable certificates of deposits when other deposits decline. How important is this practice? Plot the share of large time deposits (FRED code: LTDACBM027SBOG) in total deposits (FRED code: DPSACBM027SBOG). Explain how this share evolved over the long run and after 2004.
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