Ask Question
BusinessBusiness
28 May, 18:18

The risk that an unanticipated increase in liability withdrawals may cause an fi to have to sell assets at fire sale prices is an example of

+5
Answers (1)
  1. 28 May, 18:38
    0
    E) liquidity risk

    Explanation:

    FI = financial institution

    Liquidity risk refers to the risk that a business or a financial institution will not be able to meet its short term financial obligations.

    Usually liquidity risks are caused by a business or financial institution not being able to convert assets into cash without losing money. For example, a business that needs to pay interests on a bond may decide to sell some merchandise at a price below cost in order to have the money on time.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “The risk that an unanticipated increase in liability withdrawals may cause an fi to have to sell assets at fire sale prices is an example of ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
A goal that you want to achieve by next year is which type of goal? A. Short-term B. Intermediate C. Long-term D. Lifestyle
Answers (1)
Ace Bonding Company purchased inventory on account. The inventory costs $2,000 and is expected to sell for $3,000. How should Ace record the purchase using a perpetual inventory system?
Answers (1)
When economists say that money serves as a medium of exchange, they mean that it's A. A way to keep wealth in a readily spendable form for future use. B. Declared as legal tender by the government. C.
Answers (1)
What is the Future of TV going to Look Like?
Answers (1)
Which of the following accounts from a firm's adjusted trial balance would need to be considered when compiling the firm's income statement?
Answers (1)
New Questions in Business
The higher the price of an antique, the greater people's expectation that the object is rare. That, in turn, makes the antique appear more valuable. If the statements above are correct, then offering an antique for sale at a bargain price:
Answers (1)
Elmer received the following distributions from Virginiana Mutual Fund for the calendar year 2019: Ordinary dividends $250 Capital gain distributions $170 Nontaxable distributions $80 Elsie, Elmer's wife, did not own any of the Virginiana Mutual
Answers (1)
Ocean Vessels, Inc., and Pacific Harbor Company enter into a contract for a sale of a boat. Ocean is a merchant who deals in goods of the kind sold. The goods are defective. Under the UCC, the implied warranty of merchantability is breached a.
Answers (1)
If it is known that the income elasticity of demand for the same good is 2.5, estimate the percentage change in demand if consumer income increases from $100 to $300.
Answers (1)
Mark has been working at shop-mart for the past 10 years. despite working hard, he is unable to get what he wants or needs done, such as restocking the produce aisle. he is constantly tired and receives no rewards for his hard work.
Answers (2)
Home » Business » The risk that an unanticipated increase in liability withdrawals may cause an fi to have to sell assets at fire sale prices is an example of
Sign Up Forgot Password?