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  3. Study Set
    Principles of Money Banking
  4. Exam
    Exam 12: Depository Financial Institutions
  5. Question
    Because Transactions Deposits Can Be Withdrawn at Any Time, Banks
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Because Transactions Deposits Can Be Withdrawn at Any Time, Banks

Question 42

Question 42

Multiple Choice

Because transactions deposits can be withdrawn at any time, banks are exposed to


A) credit risk.
B) liquidity risk.
C) trading risk.
D) interest risk.

Correct Answer:

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