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The probability distribution of the net deposit drain of a

Question: The probability distribution of the net deposit drain of a DI has been estimated to have a mean of 2 percent and a standard deviation of 1 percent.

a. Is this DI increasing or decreasing in size? Explain.

b. If a DI has a net deposit drain, what are the two ways it can offset this drain of funds? How do the two methods differ?

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Finance Basics: The probability distribution of the net deposit drain of a

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