Which Type of Financial Intermediary Is More Highly Exposed to Liquidity

question 20

Multiple Choice

Which type of financial intermediary is more highly exposed to liquidity risk?

• A)property-casualty insurance companies
• B)life insurance companies
• C)mutual funds
• D)depository institutions

---

Definitions:

Ebbinghaus

refers to Hermann Ebbinghaus, a German psychologist known for his pioneering work in the study of memory, including the forgetting curve and the spacing effect.

Landmarks

Recognizable natural or artificial features that stand out from their surroundings and are often used for navigation.

Alumni

Graduates or former students, especially of a particular school, college, or university.

Acoustic Coding

A process by which information is represented and remembered in the form of sound, important in verbal memory.