Which of the Following Is Not a Potential Cause of Liquidity

question 43

Multiple Choice

Which of the following is not a potential cause of liquidity risk for a DI?

• A)a decrease in the DI's stock price caused by market factors
• B)an increase in requests to fund large amounts of loan commitments
• C)a decrease in the availability of short-term borrowed funds
• D)an increase in requests by depositors to withdrawal large amounts of deposits

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Definitions:

Level of Employment

The total number of people employed in the economy at a given time, reflecting the jobs available and workforce participation.

Monopsonist

A market condition where there is only one buyer facing many sellers, giving the buyer significant control over prices.

Labor Supply Curve

A graphical representation that shows the relationship between the wage rate and the quantity of labor that workers are willing to supply.

Marginal Expenditure

The extra expense associated with making an additional unit of a product or service.