18-1 To reduce liquidity risk an FI can efficiently manage the liability structure of its portfolio.

Name: 18-1 To reduce liquidity risk an FI can efficiently manage the liability structure of its portfolio.
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By efficiently managing the liability structure of its portfolio, an FI can reduce liquidity risk. This can be done through techniques such as asset-liability management, diversifying sources of funding, and maintaining reserves of liquid assets.

18-1 to Reduce Liquidity Risk an FI Can Efficiently Manage