Illiquidity Is a Problem to an FI Because While FI

question 14

Multiple Choice

Illiquidity is a problem to an FI because while FI:

• A)liabilities tend to be highly illiquid, its assets usually are not
• B)assets tend to be highly liquid, its liabilities usually are not
• C)liabilities tend to be highly liquid, its assets usually are not
• D)None of the listed options are correct.

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Definitions:

Punitive

Relating to or aiming at punishment.

Authoritarian

A leadership or governance style characterized by strict obedience to authority, often at the expense of personal freedom.

Uninvolved

A parenting style characterized by a low level of responsiveness and demand, often associated with neglectful or dismissive behavior towards children.

Dirty Clothes

Dirty clothes refer to garments that have been soiled or contaminated and require washing to be cleaned and deemed hygienic for wear again.