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:

Accrued Interest

Interest that has been incurred but not yet paid or received in cash.

Adjusting Entry

An accounting record made to adjust income or expenditure in accounts to reflect the accrual basis of accounting properly.