Section Two (5%)
8 v6 \1 d6 {4 a# j0 R Directions: Translat the following sentences into Chinese. Write your translation on the blank space. ' X0 j1 a: l2 U B9 f* z( v- u/ K$ X
1. Liquidity risk arises from the inability of a bank to accommodate unexpected decreases in liabilities or to fund increases in assets. When a bank has inadequate liquidity, it cannot obtain sufficient funds, either by increasing liabilities or by converting assets promptly, at a reasonable cost, thereby affecting profitability. In extreme cases, insufficient liquidity can lead to the insolvency of a bank. |