One reason FIs such as deposit-taking institutions and life insurance companies are exposed to liquidity risk is the relatively illiquid nature of their liabilities.
Correct Answer:
Verified
Q1: Savings accounts are less liquid than demand
Q2: A liquid asset can be converted to
Q4: To reduce liquidity risk an FI can
Q10: Because retail GICs have fixed maturities, FI
Q14: In most countries, assets used to satisfy
Q17: One method of reducing the risk of
Q29: If the fees charged on demand deposit
Q38: Demand deposits are a costless source of
Q39: Deposits with low withdrawal risk typically are
Q40: Managing liabilities as a means of managing
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents