基础讲义

问题如下：

What are two types of liq uidity risk?

选项：

解释：

The two types are funding liquidity risk and trading liquidity risk

Funding liquidity risk refers to the case where a firm cannot access enough liq uid cash and assets to meet its obligations. For example, banks take in short-term deposits and lend the money out for the longer term at a higher rate of interest.

Trading liquidity risk refers to a case where markets temporarily seize up. For example, if market participants cannot, or will not, take part in the market, this may force a sel ler to accept an abnormally low price, or take away their ability to turn an asset into cash and fund ing at any price.