Which of the Following Is Not a Potential Cause of Liquidity

question 59

Multiple Choice

Which of the following is not a potential cause of liquidity risk for a DI?

• A) A decrease in the DI'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.

---

Definitions:

Fee Simple Absolute

Fee simple absolute is the most complete form of ownership of real estate, providing unlimited control subject to government restrictions and commitments.

Unconditional Power

Absolute authority or control without any restrictions or conditions.

Dispose

The act of selling, transferring, or getting rid of an asset or property.

Property

Assets or rights owned by individuals or entities, which can be tangible or intangible, and are subject to ownership claims.