Section Two (5%) ) J( c9 `) ^7 S `! ]) T+ B
Directions: Translat the following sentences into Chinese. Write your translation on the blank space. & t% b5 z$ N% Z. |; p
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. |