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.

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Definitions:

Carpals

The eight small bones that make up the wrist that connects the hand to the forearm.

Femur

The thigh bone, which is the longest, strongest, and heaviest bone in the human body, extending from the hip to the knee.

Fibula

A long, thin bone located in the lower leg, lateral to the tibia, playing a key role in stabilizing the ankle and supporting lower leg muscles.

Tarsals

A group of seven bones in the foot situated between the lower leg bones and the metatarsals, contributing to foot's structure and movement.