Liquidity Risk for an FI Includes the Possibility of an Unexpected

question 24

True/False

Liquidity risk for an FI includes the possibility of an unexpected inflow of funds.

---

Definitions:

Null Hypothesis

A default statement that indicates no effect or no difference, used as a starting point for statistical hypothesis testing.

Directional Hypothesis

A hypothesis that outlines the anticipated direction of the difference or relationship.

Critical Value

A threshold in a statistical test that defines the boundary for deciding whether an observed statistic is extreme enough to reject the null hypothesis.

Alpha

A threshold value used in hypothesis testing to determine the significance level at which the null hypothesis is rejected in favor of the alternative hypothesis.