The risk that many depositors withdraw their funds from an FI at once is

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The risk that many depositors withdraw their funds from an FI at once is known as liquidity risk, as it pertains to the ability of the FI to access sufficient funds to meet the withdrawals. Credit risk refers to the risk that borrowers may default on their loans, sovereign risk pertains to the risk of political instability or economic turmoil in a foreign country, and currency risk refers to the risk of fluctuations in exchange rates impacting the value of assets or liabilities denominated in foreign currencies.

The Risk That Many Depositors Withdraw Their Funds from an FI