One of the unique problems that banks face is:
A)They hold liquid assets to meet illiquid liabilities
B)They hold illiquid assets to meet liquid liabilities
C)They hold liquid assets to meet liquid liabilities
D)Both their assets and their liabilities are illiquid

Question

Quizplus · Accepted Answer

Banks typically hold illiquid assets, such as loans, to meet liquid liabilities, like customer deposits, which can be withdrawn on demand. This mismatch can create liquidity risk.

One of the Unique Problems That Banks Face Is