Which one of the following is a definition of a bank's liquidity risk? Select one: a.The risk
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Question:
Which one of the following is a definition of a bank's "liquidity risk"?
Select one:
a.The risk that interest payments on deposits will be greater than its interest rate receipts from loans.
b.The risk that the regulatory authority will enact measures which reduce the bank's profitability.
c.The risk that there could be an unexpectedly large withdrawal of short-term deposits which cannot be met by calling in longer term loans.
d.The risk that a large number of borrowers will fail to repay their loans.
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