Mutual funds tend to have less exposure to liquidity risk than banks and credit unions.

Name: Mutual funds tend to have less exposure to liquidity risk than banks and credit unions.
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Question

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Mutual funds generally have a diverse portfolio of investments and are not reliant on a single source of funding or liquidity. However, banks and credit unions rely on deposits from customers, which can be withdrawn at any time, making them more exposed to liquidity risk.

Mutual Funds Tend to Have Less Exposure to Liquidity Risk