In banking, liquidity risk is...
A) the risk faced by a borrower that the lender may not renew a loan that the borrower wishes to renew
B) the risk faced by a bank that the depositors would unexpectedly withdraw their deposits and it has less than sufficient amount to meet the withdrawals
C) the risk that the bank cannot raise more deposits or equity to meet withdrawals made by the depositors
D) both a and b
E) both b and c
Correct Answer:
Verified
Q1: A tail risk is:
A)risk that arises at
Q2: The sources of default risk is are
A)theft
B)cash
Q3: Liquidity risk can manifest in
A)an inability to
Q4: The organizational triad of ERM consists of
Q5: To control default risk, the bank can
A)buy
Q7: The communication triad of ERM consists of
Q8: Default/credit risk for a bank is
A)the risk
Q9: One way to control interest rate risk
Q10: The behavioral biases that typically impede effective
Q11: For a given change in the market
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