To ease the demand for immediate cash by customers, and FI can either borrow additional funds or sell assets.

Name: To ease the demand for immediate cash by customers, and FI can either borrow additional funds or sell assets.
Brand: Quizplus
Rating: 4.8 (57 reviews)

Question

Quizplus · Accepted Answer

Yes, this is true. If a financial institution (FI) faces a sudden demand for cash by its customers, it can borrow additional funds from other sources or sell some of its assets to meet the demand. This is a common practice in the banking industry to manage liquidity risk.

To Ease the Demand for Immediate Cash by Customers, and FI