FIs Are Particularly Vulnerable to Sudden and Unexpected Demand for Funds.Liquidity

question 40

Multiple Choice

FIs are particularly vulnerable to sudden and unexpected demand for funds.Liquidity regulations are imposed for all of the following reasons, except to:

• A)ensure that authorised DIs have sufficient liquidity
• B)prevent liquidity problems and possible contagion effects that may spread to other FIs
• C)increase liquidity for prudential management
• D)ensure that authorised DIs have sufficient capital

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Definitions:

Ethics

The branch of philosophy that deals with questions about morality, including the goodness or badness of actions, the rights and wrongs of decisions.

End-Of-Life Issues

Concerns and considerations related to the physical, psychological, legal, and ethical aspects of dying.

American Medical Association

A professional association for physicians and medical students in the United States, focused on promoting the art and science of medicine and the betterment of public health.

Tact

The ability to communicate effectively and sensitively with others, especially in difficult or delicate situations.