The risk that a credit union will experience an unanticipated wave of withdrawals without an offsetting amount of new deposits is ____ risk.
A)credit (default)
B)interest rate
C)liquidity
D)exchange rate
E)None of these are correct.

Question

Quizplus · Accepted Answer

The risk described is liquidity risk, which occurs when an institution (like a credit union) faces an unexpected surge in withdrawals and cannot meet those demands without sufficient incoming deposits.

The Risk That a Credit Union Will Experience an Unanticipated