Which of the following are sources of liquidity risk? Check all that apply. An unexpected increase in the value of bank assets resulting from a change in interest rates An unexpected increase in withdrawals by depositors An increase in the amount of interest rate-sensitive assets An unexpected increase in payoffs of liabilities that come due

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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5. Liquidity risk
Which of the following are sources of liquidity risk? Check all that apply.
An unexpected increase in the value of bank assets resulting from a change in interest rates
An unexpected increase in withdrawals by depositors
An increase in the amount of interest rate-sensitive assets
An unexpected increase in payoffs of liabilities that come due
Which of the following are potential solutions to the liquidity problem? Check all that apply.
Borrowing from the Federal Reserve
Raising cash by issuing commercial paper
Lending in the federal funds market
Borrowing in the federal funds market
Transcribed Image Text:5. Liquidity risk Which of the following are sources of liquidity risk? Check all that apply. An unexpected increase in the value of bank assets resulting from a change in interest rates An unexpected increase in withdrawals by depositors An increase in the amount of interest rate-sensitive assets An unexpected increase in payoffs of liabilities that come due Which of the following are potential solutions to the liquidity problem? Check all that apply. Borrowing from the Federal Reserve Raising cash by issuing commercial paper Lending in the federal funds market Borrowing in the federal funds market
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