Banks' assets tend to be less liquid than their liabilities.

Name: Banks' assets tend to be less liquid than their liabilities.
Brand: Quizplus
Rating: 4.9 (56 reviews)

Question

Quizplus · Accepted Answer

Banks often hold assets such as loans or investments that may take time to convert into cash, while their liabilities (such as deposits) are usually more readily available for withdrawal by customers. This imbalance in liquidity can pose a risk to banks if they face sudden withdrawals or other unexpected events.

Banks' Assets Tend to Be Less Liquid Than Their Liabilities