Which of the Following Statements Is True in the Context

question 62

Multiple Choice

Which of the following statements is true in the context of the liquidity index?

• A)The greater the difference between immediate fire-sale asset prices and fair market value prices, the more liquid is the FI's portfolio of assets.
• B)The greater the difference between immediate fire-sale asset prices and fair market value prices, the less liquid is the FI's portfolio of assets.
• C)The smaller the difference between immediate fire-sale asset prices and fair market value prices, the less liquid is the FI's portfolio of assets.
• D)None of the listed options are correct.

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