___________________ is the danger that a financial institution will be required to make a payment when the intermediary has only long- term assets that cannot be converted to liquid funds quickly without a capital loss.
A) Liquidity risk
B) Interest rate risk
C) Timing risk
D) Exchange risk

Question

Quizplus · Accepted Answer

Liquidity risk refers to the danger that a financial institution will not be able to quickly convert assets into cash without a significant loss in value, which is crucial when it needs to meet its short-term obligations or make prompt payments.

___________________ Is the Danger That a Financial Institution Will Be