What Is Liquidity Risk

question 40

Multiple Choice

What is liquidity risk?

• A) A problem that arises when a firm runs short of cash.
• B) The risk of asset prices rising too high.
• C) The chance that the borrower will fail to repay a loan.
• D) The risk associated with longer-term contracts.

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Definitions:

Foreign Policy

A government's strategy in managing its relationships with other countries or international entities.

Export-Import Bank

A government agency or financial institution that provides financial assistance to facilitate the export and import of goods.

Private Spaceports

Facilities owned by non-governmental entities used for launching spacecrafts privately.

Absolute Liability

Absolute liability refers to a legal responsibility for damages or injury, even in the absence of fault or negligence.