Question

The risk that an unanticipated increase in liability withdrawals may cause an FI to have to...

The risk that an unanticipated increase in liability withdrawals may cause an FI to have to sell assets at fire sale prices is an example of

technology risk

interest rate risk

liquidity risk

sovereign risk

credit risk

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Option a, technology risk is the risk arising out of failure of technology.

Option b, interest rate risk is a risk arising from change in interest rates.

Option c, liquidity risk is the risk faced by the company in whose stock the investment is made and the difficulty in selling the security.

Option d, sovereign risk is the risk that a government of a country could default on sovereign debt.

Option e, credit risk is the risk that a borrower would default on required payments.

Henec, the answer is option c.

In case of any query, kindly comment on the solution.

0 0
Know the answer?
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
Similar Questions
POINT/COUNTER-POINT: Should an MNC Risk Overhedging? POINT: Yes. MNCs have some “unanticipated” transactions that occur without...
POINT/COUNTER-POINT: Should an MNC Risk Overhedging? POINT: Yes. MNCs have some “unanticipated” transactions that occur without any advance notice. They should attempt to forecast the net cash flows in each currency due to unanticipated transactions based on the previous net cash flows for that currency in a previous period. Even though it would be impossible to forecast the volume of these unanticipated transactions per day, it may be possible to forecast the volume on a monthly basis. For example, if...
Should an MNC Risk Overhedging? POINT: Yes. MNCs have some “unanticipated” transactions that occur without any...
Should an MNC Risk Overhedging? POINT: Yes. MNCs have some “unanticipated” transactions that occur without any advance notice. They should attempt to forecast the net cash flows in each currency due to unanticipated transactions based on the previous net cash flows for that currency in a previous period. Even though it would be impossible to forecast the volume of these unanticipated transactions per day, it may be possible to forecast the volume on a monthly basis. For example, if an...
For an individual with a net income of $50,000, a tax liability of $10,704.50 and a...
For an individual with a net income of $50,000, a tax liability of $10,704.50 and a 29% marginal tax rate? ____ The average tax rate is 21.41% The average tax rate is 29.00% The average tax rate is undetermined, but less than the marginal tax rate The average tax rate is undetermined, but greater than the marginal tax rate A firm had an accounts receivable balance of $150 and $170 at the beginning and the end of the week, respectively....
Multiple Choice 11. Prepayment risk is: A. the risk you will not receive the cash flows...
Multiple Choice 11. Prepayment risk is: A. the risk you will not receive the cash flows on a mortgage-backed security B. the risk that you will receive the cash flows sooner than expected and be forced to invest at a lower rate. C. the risk that you will receive the cash flows later than expected and not be able to invest at current, higher rates. 12. Based on the video Inside the Meltdown, it appeared that the main reason Lehman...
Question 2 Businesses’ Investment decisions are based on the trade-off between the:    A - potential...
Question 2 Businesses’ Investment decisions are based on the trade-off between the:    A - potential profit that could be generated by investment and the cost of borrowing money to finance the investment.    B- interest rate that savers will earn and the interest rate that the borrowers will have to pay.    C- potential profit that could be generated and the willingness of a lender to make the loan.    D- future value of the loan and the present...
In insurance, the larger the number of exposures of a case, the higher the risk for...
In insurance, the larger the number of exposures of a case, the higher the risk for the insurance company to sell insurance for that case. T       F 2.         Among the many different ways for people to handle risk, buying insurance is an effective way to reduce risk.        T     F 3.         A mortgage loan with a negative amortization causes both the principal and interest balances to increase over time.             T       F 4.         Your liability insurance is designed to protect...
21.  Which of the following is a characteristic of a liability?       a. It creates a present obligation...
21.  Which of the following is a characteristic of a liability?       a. It creates a present obligation for future payment of cash or services.       b. It cannot be settled with services.       c. It is an avoidable obligation.       d It occurs because of a future transaction or event. 22.  Assuming rising prices, which method will give the highest dollar value for cost of goods sold on the income statement?       a.  FIFO       b.  Average Cost       c.  LIFO       d. All of these give equal values for cost of...
Please give examples for each risk domain in any healthcare organization. Domain Description Operational The business...
Please give examples for each risk domain in any healthcare organization. Domain Description Operational The business of healthcare is the delivery of care that is safe, timely, effective, efficient, and patientcentered within diverse populations. Operational risks relate to those risks resulting from inadequate or failed internal processes, people, or systems that affect business operations. Included are risks related to: adverse event management, credentialing and staffing, documentation, chain of command, and deviation from practice. Clinical / Patient Safety Risks associated with...
All else equal, an increase in customers' reservation prices will have what effect on the value...
All else equal, an increase in customers' reservation prices will have what effect on the value generated by a business? It will be unaffected It will decrease It will increase Question 2 An increase in the value of resources in an alternate use will have what effect on the ability of a company to generate value using those resources? it will be unaffected It will decrease It will increase Question 3 Which sequence of planning communication is most appropriate? Analyze...
An MNC's value depends on all of the following: a. the MNC's required rate of return....
An MNC's value depends on all of the following: a. the MNC's required rate of return. b. the amount of the MNC's cash flows in a particular currency. c. the exchange rate at which cash flows are converted to dollars. d. All of the above 1 points    QUESTION 2 Livingston Co. has a subsidiary in Korea. The subsidiary reinvests half of its net cash flows into operations and remits half to the parent. Livingston's expected cash flows from domestic...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT