Which of the Following Is NOT a Potential Causes of Liquidity

question 51

Multiple Choice

Which of the following is NOT a potential causes of liquidity risk for a DTI?

• A)A decrease in the DTI's stock price caused by market factors.
• B)An increase in requests to fund large amounts of loan commitments.
• C)A decrease in the availability of short-term borrowed funds.
• D)An increase in requests by depositors to withdrawal large amounts of deposits.
• E)A decrease in asset prices of securities held in the investment portfolio.

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Definitions:

Desire to Harm

An intention or inclination to cause physical, emotional, or psychological injury to others.

Potency Bias

The tendency to perceive or attribute more strength, influence, or efficacy to a cause or actor than is warranted based on evidence.

Defense Mechanism

Psychological strategies employed by individuals to cope with reality and maintain self-image.

Promotion Determination

The process of deciding which employee is to be promoted, based on criteria such as performance, seniority, and suitability for the position ahead.