Question: Please explain in detail with examples Q5. (a) Explain the two causes of liquidity risk. (7 marks) (b) What are two ways a depository institution

Please explain in detail with examples Q5. (a) Explain the two

Please explain in detail with examples

Q5. (a) Explain the two causes of liquidity risk. (7 marks) (b) What are two ways a depository institution can offset the effects of asset-side liquidity risk such as the drawing down of a loan commitment? Explain. (8 marks) (c) What are the four measures of liquidity risk? Explain how each of them could be implemented and utilized by a depository institution. (15 marks)

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