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Choose the statement that is incorrect.

A) A financial? institution's net worth is the market value of what it has lent minus the market value of what it has borrowed.

B) If a financial? institution's net worth is? positive, the institution must be solvent and liquid.

C) A financial institution can be solvent but illiquid.

D) A financial institution is illiquid if it has made? long-term loans with borrowed funds and is faced with a sudden demand to repay more of what it has borrowed than its available cash.

Business Economics, Economics

  • Category:- Business Economics
  • Reference No.:- M91865608

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