Question: Liquidity risk ( 3 Points ) * Select your answer B . the risk of a counterparty failing to settle a transaction as expected through
Liquidity risk Points
Select your answer
B the risk of a counterparty failing to settle a
transaction as expected through a transfer sys
tem, which can happen if one party defaults on its
clearing obligations to one or more counterparties.
G the risk of having insufficient funds available to
meet a sudden largescale demand for funds from
depositors or sudden drawdowns from clients.
E the risk of a party failing to meet the terms of a
contract before that contract's settlement date,
thus terminating the contract and causing the
bank to replace it with another one, incurring re
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