18-3 One Reason FIs Such as Depository Institutions and Life

question 60

True/False

18-3 One reason FIs such as depository institutions and life insurance companies are exposed to liquidity risk is the relatively illiquid nature of their liabilities.

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Definitions:

Basic Trust

A concept in Erik Erikson’s theory of development, referring to the first stage where an infant learns whether or not they can trust that their needs will be met by caretakers.

Basic Mistrust

A term associated with Erik Erikson's stages of psychosocial development, referring to the first stage where infants learn whether or not they can trust the world based on their needs being met.

Basic Trust

A fundamental sense of trust in the world and others, often developed during infancy, that is seen as the foundation of healthy psychological development.

Responsive

Showing a positive and quick reaction to something, either emotionally or by taking action.