Which of the following is the term used to describe a failing bank selling off a substantial amount of assets in a short time period in order to remain solvent?
A)Fire sale
B)Short sale
C)Long sale
D)Liquidity sale

Question

Quizplus · Accepted Answer

A fire sale is when a failing bank is forced to sell off a substantial amount of assets quickly in order to raise cash and meet its financial obligations. This type of sale usually results in lower prices for the assets being sold, as the bank is under pressure to sell quickly and may not have the time to wait for better offers. Short sale refers to the sale of a security or asset that the seller doesn't own, while a long sale is not a commonly used term in finance. Liquidity sale is a general term that could refer to any sale made to improve a company's liquidity, but is not specifically associated with failing banks.

Which of the Following Is the Term Used to Describe