Question

Liquidity risk is __________. the chance that investors will not be able to turn investments back into cash quickly enough to meet their financial needs the chance that investors will never be able to turn investments back into cash the chance that borrowers will not be able to repay their loan the chance that investors will not have enough investments

Answer 1

In general economic terms, liquidity risk is "the chance that investors will not be able to turn investments back into cash quickly enough to meet their financial needs" since the funds in question are at risk of losing value quickly.