Funding risk is best defined as:
A) the risk of an ADI being unable to meet their financial obligations as they fall due
B) the risk the ADI will not be able to settle their payment system obligations
C) the risk of an ADI loss resulting from a borrower failing to make its agreed loan payments
D) the risk that the ADI cannot continue to fund their assets, such as the inability to roll-over maturing debts
E) the chance of losses arising from unexpected movements in a market variable.
Correct Answer:
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