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7-48 a Natural Consequence of the Effects of Realized Liquidity

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7-48 A natural consequence of the effects of realized liquidity risk across several institutions is the ability to recognize capital gains on the sale of assets in the attempt to generate cash.


Definitions:

Slope-intercept Form

An equation of a straight line in the form y = mx + b, where m is the slope and b is the y-intercept.

Slope-intercept Form

A way of writing the equation of a straight line in the form y = mx + b, where m is the slope and b is the y-intercept.

Slope

A measure of the steepness or the inclination of a line, defined as the ratio of the vertical change to the horizontal change.

Sales Price

The amount for which a product is sold to the customer, excluding any discounts or taxes.

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