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When a Financial Institution Sells Assets to Manage Liquidity,it Faces

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Short Answer

When a financial institution sells assets to manage liquidity,it faces ________________________.It loses future earnings on those assets,incurs transaction costs on those sales,and the assets most easily sold often have the lowest return.

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Definitions:

Oral Contracts

Agreements between parties that are made verbally and not recorded in written form, yet are still legally binding under certain conditions.

UCC

The Uniform Commercial Code is an extensive collection of statutes that regulate every aspect of commercial dealings across the United States.

Proper Electronic Form

A format for electronic documents that meets legally recognized standards and requirements for validity and enforceability.

Usage of Trade

Refers to the customs and practices commonly observed and accepted in a particular industry or trade.

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