Liquidity Risk Involves a Kind of Systemic Failure on the Part

question 37

True/False

Liquidity risk involves a kind of systemic failure on the part of the financial institution where it fails to meet expected and unexpected cash flow needs as they emerge from time to time.

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Definitions:

Continuously Variable Signal

A signal that can assume an infinite number of values within a given range, as opposed to discrete signals.

Analog

Referring to a type of signal or information that varies continuously over a range, unlike digital signals which are discrete.

Discrete Input

A discrete input is a type of digital signal input to a control system or device indicating a binary condition, such as on/off.

PLC

Programmable Logic Controller, a robust computer used in industrial automation for controlling machinery and processes.