Borrowed liquidity (liability)management is less risky for a financial institution than is asset conversion.

Name: Borrowed liquidity (liability)management is less risky for a financial institution than is asset conversion.
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Quizplus · Accepted Answer

Borrowed liquidity management involves taking on debt, which increases financial leverage and risk, whereas asset conversion, which involves converting assets into cash, typically carries less risk as it doesn't increase liabilities.

Borrowed Liquidity (Liability)management Is Less Risky for a Financial Institution