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    Financial Institutions Management Study Set 2
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    Exam 14: Liquidity Risk
  5. Question
    Liquidity Risk Can Only Arise on the Asset Side of an FI's
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Liquidity Risk Can Only Arise on the Asset Side of an FI's

Question 19

Question 19

True/False

Liquidity risk can only arise on the asset side of an FI's balance sheet as this means that the FI does not hold enough liquid assets such as cash or liquid securities.

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