Banking Awareness - Basics Of Banking & Banking Terminology
Sudden withdrawal of deposits by customers mainly exposes banks to which risk?
Sudden withdrawal of deposits by customers mainly exposes banks to which risk?
hard Q10 of 15
Step-by-Step Solution
Step 1: Identify withdrawal impact
Large withdrawals strain available cash.Step 2: Match with risk type
This situation increases liquidity risk.Final Answer:
Liquidity risk → Option BQuick Check:
Sudden cash outflow = Liquidity risk ✅
Quick Trick: Mass withdrawals = Liquidity risk.
Common Mistakes:
- Linking withdrawals directly to credit risk.
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