How Can Pledging Requirements Make Bank Assets Less Liquid

question 20

Short Answer

How can pledging requirements make bank assets less liquid?

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Definitions:

Non-delegable Duty

A legal obligation that cannot be transferred to another party and must be performed by the individual or entity to whom it is assigned.

Tort

A private wrong that injures another person’s physical well-being, property, or reputation.

Insane

A term used to describe severe mental illness or incapacity, often legally defined in the context of an individual's fitness to stand trial or make decisions.

Court Order

An official proclamation by a judge that directs or requires parties to do or refrain from doing specified actions.