FINANCIAL MARKETS INSTITUTIONS(LL)-PKG
FINANCIAL MARKETS INSTITUTIONS(LL)-PKG
7th Edition
ISBN: 9781260688887
Author: SAUNDERS
Publisher: MCG
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Chapter 21, Problem 9Q
Summary Introduction

To determine: The two ways a DI can set-off the effects of asset-side liquidity risk, such as the drawing down of a loan commitment.

The liquidity risk is risk arises when a firm cannot able to easily sold or buy their investment or lack of marketability of the investment without much loss.

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