Liquidity risk is the risk Keyaira Brax Final Fin 421 Quest Flash

Question 6 / 36: Liquidity risk is the risk

A that day to day withdrawals and loan demands will no longer be predictable

B that a sudden increase in withdrawals or loan demand may require an FI to liquidate assets
in a short period and at low prices

C incurred by FI when the maturities of its assets and liabilities are mismatched and interest
rates are volatile

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