Many people believed that when the calendar changed from December 31, 1999 to January 1, 2000, many bank records were going to be wiped out, so many people planned on withdrawing their funds. If this were to happen, this would be an example of:

Question

Quizplus · Accepted Answer

Liquidity risk refers to the risk that an entity will not be able to meet its financial obligations as they come due, without incurring unacceptable losses. In this scenario, if many people withdrew their funds simultaneously, banks might not have enough liquid assets to meet these demands, thus facing liquidity risk.

Many People Believed That When the Calendar Changed from December