Many people believed that when the calendar changed from December 31, 1999 to January 1, 2000, many bank records were going to be wiped out, so many people planned on withdrawing their funds.If this were to happen, this would be an example of:

Question

Quizplus · Accepted Answer

Liquidity risk refers to the risk that an entity may not be able to meet its short-term financial obligations due to an inability to convert assets into cash quickly. In this scenario, if many people withdrew their funds simultaneously, banks might face liquidity issues.

Many People Believed That When the Calendar Changed from December