Banks face liquidity risk because
A) they can have difficulty meeting their depositor's demands to withdraw money.
B) they are unable to borrow from the Federal Reserve.
C) households and businesses may seek to borrow a large amount of funds in a short period of time.
D) governments tend to run high budget deficits.
A
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What do taxes do?
(a) Impact the incentive to use resources efficiently (b) Transfer income from the person or entity paying taxes to other individuals or entities (c) Affect the relative prices of goods, services and resources (d) All of the above
Which of the following is true of fiscal spending at the federal, state, and local levels of the U.S. government?
a. In 2009, total government spending equalled around $1 billion. b. Investment expenditure in the U.S. exceeds the total spending at all levels of government. c. Government spending at federal, state, and local levels declined steadily from the 1960s until about 1980. d. Through the 1950s and 1960s, the U.S. government maintained a balanced budget. e. Federal government spending exceeds state and local government spending in the U.S.