Demand Deposits Pose a Liquidity Risk for FIs Because Funds

question 45

True/False

Demand deposits pose a liquidity risk for FIs because funds may be withdrawn at any time.

---

Definitions:

Property Insurance

Coverage that provides financial reimbursement to the owner or renter of a structure and its contents in the event of damage or theft.

Days' Sales Uncollected

A financial ratio that shows the average number of days it takes for a company to collect payment after a sale has been made.

Accounts Receivable

Receivables from clients for goods or services a company has provided but has not yet received payment for.

Managing Collections

The process of overseeing and ensuring the timely collection of accounts receivable to maintain a company's cash flow.