Risk stating assets are sold at low prices because of sudden...

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Risk stating assets are sold at low prices because of sudden surge in withdrawals of liabilities is classified as

A. payment risk

B. liquidity risk

C. income risk

D. balance risk

Answer: Option B

Solution (By Examveda Team)

Risk stating assets are sold at low prices because of sudden surge in withdrawals of liabilities is classified as liquidity risk. Liquidity is the ability of a firm, company, or even an individual to pay its debts without suffering catastrophic losses.

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