Which of the Following Items May Expose an FI to Liquidity

question 74

Multiple Choice

Which of the following items may expose an FI to liquidity risk?

• A)$500 000 in demand deposits and $100 000 in overnight deposits made by another FI
• B)$500 000 in demand deposits and $50 000 in credit line facilities
• C)$500 000 in demand deposits, $100 000 in loan commitments and $50 000 in short-term securities
• D)$500 000 in demand deposits, $100 000 in overnight deposits made by another FI and $50 000 in credit line facilities

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Definitions:

Big Five Trait

A model in psychology that describes human personality through five broad dimensions: openness, conscientiousness, extraversion, agreeableness, and neuroticism.

Adult Attachment

Patterns of relational behavior and emotions in adults that mirror the bonding experiences they had in early childhood with caregivers.

Preoccupied

Engrossed or absorbed in thoughts or concerns, often to the extent of being unaware of one's surroundings or other matters.

Dark Triad

A term in psychology that refers to the personality traits of narcissism, Machiavellianism, and psychopathy, which are associated with a more manipulative and self-centered interpersonal style.