Liquidity Risk Is a Function of Many Factors

question 53

Multiple Choice

Liquidity risk is a function of many factors. Which of the following is NOT one of those factors?

• A) Funding sources.
• B) Location of depositors.
• C) Average size of accounts.
• D) Number of depositors.
• E) All of the above are liquidity risk factors.

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Definitions:

Total Assets

The sum of all assets owned by a company, including both current and non-current assets.

Total Liabilities

The sum of all financial obligations and debts owed by a company to external entities or individuals.

Total Assets

The cumulative value of all resources owned by a company, including cash, inventory, property, and equipment.