Which Type of Financial Intermediary Is More Highly Exposed to Liquidity

question 23

Multiple Choice

Which type of financial intermediary is more highly exposed to liquidity risk?

• A)Property & casualty insurance companies.
• B)Life insurance companies.
• C)Mutual funds.
• D)Deposit-taking institutions.
• E)Pension funds.

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Definitions:

Unhealthy

Describes conditions, habits, or behaviors that are detrimental to one's physical or mental well-being.

Borderline

Borderline often refers to borderline personality disorder (BPD), a mental health condition characterized by unstable moods, behavior, relationships, and self-image.

Unstable

Lacking consistency, predictability or reliability, often used to describe emotional states or chemical compounds.

Manipulation

An action or strategy carefully designed to change a person's behavior or perception in a subtle or overt way.