The correct answer is C.

Choice A is incorrect. Other term funding refers to longer-term borrowings, not the short-term liquidity management tools like Fed funds, LIBOR, and Eurodollar deposits that are used for managing liquidity on a daily basis.

Choice B is incorrect. Liquid assets are cash or assets that can be easily converted into cash. While Fed funds, LIBOR and Eurodollar deposits can provide liquidity, they themselves are not considered liquid assets.

Choice D is incorrect. Intraday credit refers to loans that must be paid back within the same trading day. Although these resources can help manage intraday liquidity needs, they do not fall under this category as they are not loans but rather interbank borrowing rates and deposit types.

Things to Remember

• Fed Funds: Funds that banks lend to each other overnight to meet reserve requirements.
• London Interbank Offered Rate (LIBOR): The average interest rate at which major global banks borrow from one another.
• Eurodollar Deposits: US dollar-denominated deposits at foreign banks or foreign branches of American banks.
• Liquidity Risk: The risk that a company or bank may be unable to meet short-term financial demands.
• Interbank Market: The market where banks lend and borrow funds from each other.