A problem situation that threatens a bank's solvency is related most closely wit operational liquidity.

Question

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A problem situation that threatens a bank's solvency is most closely related to credit risk or market risk, not operational liquidity. Solvency issues arise when a bank does not have enough assets to cover its liabilities, which is different from liquidity issues that involve the bank's ability to meet its short-term obligations.

A Problem Situation That Threatens a Bank's Solvency Is Related