________ is the risk that the financial institution will be unable to obtain funding to obtain cash flow necessary to satisfy its obligations.

Question

Quizplus · Accepted Answer

Funding liquidity risk refers to the risk that a financial institution will be unable to obtain funding to cover its short-term cash flow needs, which may result in defaulting on its obligations. This can occur if there is a disruption in the financial markets or if the institution's creditworthiness has deteriorated, making it difficult to attract funding from investors or other financial institutions.

________ Is the Risk That the Financial Institution Will Be