Financial Institutions Face Significant Liquidity Problems Because Of

Multiple Choice

Financial institutions face significant liquidity problems because of:

A) imbalances between the maturities of their assets and liabilities.
B) their high proportion of liabilities subject to immediate withdrawal.
C) the sensitivity of their business to changes in interest rates.
D) imbalances between the maturities of their assets and liabilities and their high proportion of liabilities subject to immediate withdrawal.
E) All of the answer options are correct.