The Risk That Many Depositors Withdraw Their Funds from an FI

question 103

Multiple Choice

The risk that many depositors withdraw their funds from an FI at once is

• A)credit risk.
• B)sovereign risk.
• C)currency risk.
• D)liquidity risk.
• E)interest rate risk.

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Definitions:

Performance

The act of carrying out a task or function, often evaluated in terms of effectiveness, efficiency, or quality.

Normal Curve

A bell-shaped curve that represents the distribution of a set of data where most occurrences take place around the central peak, and the probabilities of extreme variations taper off equally on both sides.

Intelligence Test Scores

Intelligence test scores are quantitative measures assessing an individual's cognitive abilities and potential compared to a normative population.

Bell-Shaped Pattern

A graphical representation of data that resembles the shape of a bell, typically illustrating a normal distribution in statistical analyses.