ZuoTi.Pro
Question

The risk that liquid funds will not be available in the volume needed by a bank is often called: Market risk Price risk Avail
business   finance   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

Ans Availability risk

The risk that liquid funds will not be available in the volume needed by a bank is often called Availability risk.

0 0
Add a comment
Know the answer?
Add Answer to:
The risk that liquid funds will not be available in the volume needed by a bank...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • 6. Mutual funds by risk and return Aa Aa Risk and Return of Growth Funds, Money...

    6. Mutual funds by risk and return Aa Aa Risk and Return of Growth Funds, Money Market Mutual Funds, and Balanced Funds The following three fund types differ in general price volatility and potential for return: growth funds, money market mutual funds, and balanced funds. Label the graph that follows to show the relative volatility and potential return of these three fund types as they compare with one another. VOLATILITY Balanced funds Money market mutual funds Growth funds POTENTIAL RETURN

  • U82 Assignment The Federal Reserve can be a short–term source of funds. Discuss how a bank...

    U82 Assignment The Federal Reserve can be a short–term source of funds. Discuss how a bank borrows from the Fed and why a bank would borrow from the Fed. Also discuss how the borrowing interest rate is established and include a description of what this rate (that is charged to banks) is called. Include a discussion about how to determine what that rate is today. ● Summarize the most significant uses of the funds banks obtain; include a description of...

  • 54. Risk-based capital ratios measures are associated with which of the following bank risks?             a.        ...

    54. Risk-based capital ratios measures are associated with which of the following bank risks?             a.         interest rate risk             b.         liquidity risk             c.         credit risk             d.         reinvestment risk 55. A match funding of a commercial loan with a large CD is an example of             a.         a macrohedge             b.         a microhedge             c.         increased interest rate risk             d.         short position 56. The major sources of bank liquidity are        and      ; the major uses are        and...

  • Q - Which of the following is called the Federal Funds rate? a. The interest rate...

    Q - Which of the following is called the Federal Funds rate? a. The interest rate at which banks borrow money from the Fed. b. the interest rate at which one bank borrows money from another bank. c. the interest rate at which investors borrow money from banks. d. all of the above Q - Which of the following statement(s) is true? a. If the income increases, then money demand increases b. If the price level increases, then money demand...

  • Which one of the following statements is false? The quoted rates of fed funds are single...

    Which one of the following statements is false? The quoted rates of fed funds are single payment yields. T-bills have little interest rate risk, little liquidity risk and virtually no default risk. T-bill investors receive face value only and no interest at maturity. Money market instruments include debt and equity instruments with maturities of one year or less. None of the above.

  • QUESTION 31 A bank that funds a portfolio of assets with higher credit risk than another...

    QUESTION 31 A bank that funds a portfolio of assets with higher credit risk than another bank has to have more equity capital if creditors are to be indifferent between lending to either bank. True False QUESTION 32 Subprime assets lost value rapidly between 2007 and 2009. This lowered the value of banks that had exposure to these assets and financial institutions that had exposure to banks that were exposed to subprime risk. Since the assets were hard to value...

  • 1) Interest rates are __________ to the level of loanable funds available to borrowers. Select one:...

    1) Interest rates are __________ to the level of loanable funds available to borrowers. Select one: A. perfectly correlated B. inversely related C. totally disproportional D. completely unrelated 2) If inflation is anticipated to be 3.00% per year and the nominal interest rate is currently 6.50%, which of the following represents the real rate of interest under conditions of rational expectations? Select one: A. 9.50% B. 3.50% C. 6.50% D. 3.00% E. None of the above

  • KBL Inc. with $20m funds available is seeking covered interest arbitrage (CIA) in Denmark Spot Rate...

    KBL Inc. with $20m funds available is seeking covered interest arbitrage (CIA) in Denmark Spot Rate = 6.15 (Kr/$) 3-month forward rate = 6.20 (Kr/S) 3-Month interest rate in US = 2.75% 3-month interest rate in Denmark = 3.25% The CIA profit potential is: Select one: a. -3.23% b. 0.81% c. -2.73% d. None of the Above e. 0.50%

  • KBL Inc. with $20m funds available is seeking covered interest arbitrage (CIA) in Denmark Spot Rate...

    KBL Inc. with $20m funds available is seeking covered interest arbitrage (CIA) in Denmark Spot Rate = 6.15 (Kr/$) 3-month forward rate = 6.20 (Kr/S) 3-Month interest rate in US = 2.75% 3-month interest rate in Denmark = 3.25% The CIA profit potential is: Select one: a. -3.23% b. 0.81% c. -2.73% d. None of the Above e. 0.50%

  • 1) The total amount of loanable funds available to U.S. borrowers is influenced by changes in...

    1) The total amount of loanable funds available to U.S. borrowers is influenced by changes in Select one: A. the rate of savings. B. the availability of bank credit. C. the velocity of circulation. D. all of the above. 2) Which of the following is true concerning lending patterns and inflation? (I) Adaptive lag progressively considers inflation when making loans. (II) Complete illusion ignores inflation when making loans. (III) Rational expectations only partially considers inflation when making loans. Select one:...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT