The risk that an unanticipated increase in liability withdrawals may cause an FI to have to sell assets at fire sale prices is an example of
A) credit risk.
B) liquidity risk.
C) interest rate risk.
D) sovereign risk.
E) technology risk.
Correct Answer:
Verified
Q1: Interest rate risk is probably greatest at
Q3: Risk arising from unhedged positions in securities,currencies,and
Q4: A U.S. bank has £900 million in
Q5: MONDEX spent $50 million to develop the
Q6: Rising interest rates decrease the value of
Q7: Reinvestment risk occurs when a financial institution
Q8: A corporate borrower failing to repay a
Q9: The subprime crisis is a good example
Q10: Many intermediaries,such as banks,cannot be asset transformers
Q11: A bank has total assets of $620
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents