Which of the Following Would Be an Example of Liquidity

question 88

Multiple Choice

Which of the following would be an example of liquidity risk?

• A)A bank teller manages to steal $250,000 over a period of several months.
• B)An out-of-date computer system causes the bank to lose $750,000.
• C)A bank is forced to sell $1,000,000 in loans,at a loss,in order to meet the needs of depositors.
• D)A $500,000 that loan the bank has made has been deemed uncollectible.
• E)None of the examples are of liquidity risk.

---

Definitions:

Standardized Tests

Exams that are administered and scored in a consistent manner across different test-takers to measure their abilities or knowledge in various subjects.

Perceptual Reasoning

The ability to use sensory information (such as visual and spatial) to identify patterns, solve problems, and understand the relationship between objects.

Wechsler Intelligence Tests

A set of standardized tests used to measure intelligence and cognitive ability in adults and children.

Intelligence Quotient

A measure of a person's intellectual abilities in relation to their age group, typically derived from standardized tests designed to assess human intelligence.