At which one of the following institutions is liquidity usually the most important?

Question

Quizplus · Accepted Answer

Banks typically deal with short-term deposits and withdrawals from customers, which requires them to maintain high levels of liquidity to meet these demands. Mutual funds, pension funds, and life insurers manage longer-term investments and typically have a more predictable cash flow, so liquidity is not as critical for their operations.

At Which One of the Following Institutions Is Liquidity Usually