Question

One of the unique problems that banks face is: A. they hold illiquid assets to meet liquid liabilities. B. they hold liquid assets to meet liquid liabilities. C. they hold liquid assets to meet illiquid liabilities. D. both their assets and their liabilities are illiquid.

Answer 1

Answer:

B. they hold liquid assets to meet liquid liabilities.

Explanation:

• As the banks are the credit institutions that need to have a digital transformation that thrives in the current markets.

• And banks have to deal with the customer retention and increasing competition and apart from that, they have to hold a liquid asset as to meet the liquid liabilities are some of the unique issues that are associated with the banking system.