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QUESTION 4 Rollover risk occurs when debt is due, but instead of paying it off, it is converted into new debt. At some point in
QUESTION 4 Rollover risk occurs when debt is due, but instead of paying it off, it is converted into new debt. At some point in the time, the lender will not want to renegotiate and want to collect on the debt. O True False QUESTION 5 When a Fl faces substantial liquidity risks, their first option to fire-sale their assets. True False QUESTION 6 Liquidity risk occurs when businesses drawdown on their loan commitments or when depositors withdraw funds. True False
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