Liquidity Risk Can Be Caused By

question 124

Multiple Choice

Liquidity risk can be caused by:

• A) unanticipated change in cost capital
• B) abnormal behavior of financial markets
• C) risk activation by secondary sources
• D) all of the above

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Definitions:

Net Income

Represents the total earnings of a company after all expenses and taxes have been deducted from revenue.

Trial Balance

A bookkeeping worksheet in which the balances of all ledgers are compiled into debit and credit account column totals that are equal.

Credit Column

In accounting, the column in ledgers or financial statements where credits are recorded, typically indicating a decrease in assets or an increase in liabilities.

Liabilities

Financial obligations or debts a company owes to others, such as loans, accounts payable, and mortgages.