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Which of the Following Statements Is True

Question 28

Multiple Choice

Which of the following statements is true?


A) The relative illiquidity of a market reduces an FI's losses.
B) The relative illiquidity of a market exposes an FI to magnified losses.
C) The relative illiquidity of a market does not influence an FI's loss size.
D) None of the listed options are correct.

Correct Answer:

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