Question
Which of the following is the risk when a bank fails in
honoring the commitment of payment of deposits to the customers due to inability to meet cash flow obligations?Solution
Liquidity Risk arises when a bank is unable to meet a financial commitment. This may arise due to variety of reasons. The entity may not be able to raise resources at reasonable cost. This may also arise when a bank is not able to exit an investment due to non-availability of counter party in the market resulting in impacting the liquidity of the bank in meeting its commitments.
10                          15                          ?                    �...
If   314     306      x      269       394    178    1480
Then, 1/3 x + 2x - x = ?
...12Â Â Â Â Â 13Â Â Â Â Â Â 22Â Â Â Â Â Â 47Â Â Â Â Â 96Â Â Â Â Â ?
...24  12  18  ?  157.5  708.75  3,898.125
21Â Â Â Â Â Â Â Â Â Â 48Â Â Â Â Â Â Â Â Â Â 173Â Â Â Â Â Â Â Â 516Â Â Â Â Â Â Â Â 1245Â Â Â Â Â Â 2576Â Â Â Â Â Â ?
...51     53     109     332     ?     6686
...9 134 170 ? 577 1306
...12    16    43    ?       184    220
...13 24 75 134 447 892
...97 106 121 138 157 180
...
