nayizhenfeng

The correct answer is D

Liquidity risk (funding related) refers to the risk that a financial institution will be unable to raise the cash necessary to roll over its debt, fulfill cash requirements of counterparties, or meet capital withdrawals. Note that a wide bid-ask spread would indicate high liquidity risk (trading-related), while a bid-ask spread close to zero indicates little liquidity risk. Also, high trading volume would tend to indicate lower liquidity risk (trading-related).