What do you mean by liquidity risk management?
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Liquidity risk is the risk that a company or bank may be unable to meet short term financial demands. This usually occurs due to the inability to convert a security or hard asset to cash without a loss of capital and/or income in the process.
Liquidity risk is the risk that a company or bank may be unable to meet short term financial demands. This usually occurs due to the inability to convert a security or hard asset to cash without a loss of capital and/or income in the process.
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In either case, liquidity management describes the effort of investors or managers to reduce liquidity risk exposure.One type of liquidity refers to the ability to trade an asset, such as a stock or bond, at its current price. .This usually occurs due to the inability to convert a security or hard asset to cash without a loss of capital and/or income in the process.
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