1.Which of the following are sources of liquidity risk? Check all that apply.

An unexpected increase in the market value of liabilities

An increase in the amount of interest rate-sensitive liabilities

An unexpected increase in the demand for loans

An unexpected decrease in the market value of liabilities

2. Which of the following are potential solutions to the liquidity problem? Check all that apply.

Extending more loans

Borrowing from the Federal Reserve

Increase interest rates on deposits to increase the level of deposits

Decrease the interest rates on deposits to increase the level of deposits

Answer rating: 100% (QA)

Step 11 Explanation 1 A company organisation or financial ... View the full answer