Sometimes banks hold highly liquid assets to guard against sudden large withdrawals.What do banks sacrifice when they do this?

Name: Sometimes banks hold highly liquid assets to guard against sudden large withdrawals.What do banks sacrifice when they do this?
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Question

Quizplus · Accepted Answer

When banks hold highly liquid assets to guard against sudden large withdrawals, they sacrifice profitability as these assets tend to have lower returns than riskier, higher-yielding investments.

Sometimes Banks Hold Highly Liquid Assets to Guard Against Sudden