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UPSC Economy MCQs

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Repost from UPSC Polity MCQs
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In context with the banking business, which among the following is a correct definition of liquidity risk? [A] Risk arising from funding of long term assets by short term liabilities or funding of short term assets by long term liabilities [B] Risk arising from adverse movement of interest rates during a liquidity crunch in the markets [C] Risk arising from the adverse movement of the value of the assets /investments etc. [D] Risk arising from a party becoming defaulter
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