Section Two (5%)
! j5 b$ E# D# K% f Directions: Translat the following sentences into Chinese. Write your translation on the blank space.
9 L& S0 c# c2 e* ~ 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. |