1. Banks face liquidity risk because
A) they can have difficulty meeting their depositor's demands to withdraw money.
B) they are unable to borrow from the Federal Reserve.
C) households and businesses may seek to borrow a large amount of funds in a short period of time.
D) governments tend to run high budget deficits.
Answers (1)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “1. Banks face liquidity risk because A) they can have difficulty meeting their depositor's demands to withdraw money. B) they are unable to ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers
You Might be Interested in
F banks kept 100 percent of deposits on hand as reserves, the reserve requirement ratio: A. would be 0 and the multiplier would be 1. B. and the multiplier would be 1. C. would be 1 and the multiplier would be 0. D. and the multiplier would be 0.
Answers (1)
Which one of the following is not an accurate description of the Allowance for Doubtful Accounts? Multiple Choice : The account is a temporary account. The account is increased by an estimate of uncollectible accounts expense.
Answers (1)
Money manager of a 4.82 million investment fund
Answers (1)
Torino Company has 2,800 shares of $50 par value, 6.5% cumulative and nonparticipating preferred stock and 28,000 shares of $10 par value common stock outstanding. The company paid total cash dividends of $8,000 in its first year of operation.
Answers (1)
What do tolerance and flexibility in the multiethnic workplace require?
Answers (1)
New Questions in Business
Andrew initially worked with a travel website for few months and then became self-employed by starting a martial arts school, where he taught karate to teenagers. After an year, he closed the school and joined an advertising firm.
Answers (1)
Ben learns that the company was going to be laying off several employees over the next several months. He knew that the rumor mill was going to start, and he wanted to head off mis-information and get ahead of the curve.
Answers (1)
A new investment product, housing revenue bonds, requires expertise in back-office processes, accounting policy, legal issues, and, of course, a portfolio manager's judgment on value.
Answers (2)
A potato chip manufacturer currently has a manufacturing line devoted to regular chips as well as individual lines dedicated to each variety, such as barbeque, sour cream and onion, and cheese.
Answers (1)
Which of the following is an example of procedural norms? method of making decisions format of discussion election of leaders all of the above
Answers (1)