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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.
Availability Heuristic
A quick mental leap utilizing examples that spontaneously arise in an individual's thoughts during the evaluation of a specific subject, concept, technique, or decision-making process.
Confirmation Bias
The predisposition to explore, decode, favor, and reminisce facts in a fashion that corroborates one's preconceived notions or speculations.
Certain Outcome
An outcome that is guaranteed or known to happen without any doubt.
Risky Outcome
A potential result of an action or decision that involves uncertainty and the possibility of negative consequences.
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