Which of the Following Is NOT a Potential Causes of Liquidity

question 40

Multiple Choice

Which of the following is NOT a potential causes 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.
• E)A decrease in asset prices of securities held in the investment portfolio.

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Definitions:

Social Problems

Issues within a society that are broadly recognized as situations negatively affecting a significant number of people and requiring societal intervention or solution.

Technological Advance

The process of developing new and improved technologies, which contribute to progress in various fields such as science, industry, and everyday life.

Technological Disasters

Technological disasters are catastrophic events caused by the failure of technology or human error in managing technological systems.

Environmental Movement

A diverse scientific, social, and political movement for addressing environmental issues and advocating for environmental protection.