A 'Fire-Sale' Means That an FI Increases Its Liquidity Position

question 12

True/False

A 'fire-sale' means that an FI increases its liquidity position by selling part of its assets at the assets' fair market values.

---

Definitions:

Alderfer

Refers to Clayton Alderfer's ERG theory, which categorizes human needs into existence, relatedness, and growth categories.

Process Theories

Are motivation theories that focus on how people become motivated and what they are motivated to do rather than on what motivates them.

Motivation

Refers to the process that initiates, guides, and maintains goal-oriented behaviors.

Reinforcement

A concept in behavioral science where the probability of a behavior occurring is increased by following it with a positive or negative stimulus.