Bank A is assessing whether they have enough cash to pay all of their obligations on time. This bank is assessing their _____.

Liquidity risk is the risk that a bank cannot obtain enough cash to meet payments and other obligations when they are due. Since Bank A is checking whether it can pay all its obligations on time, it is assessing liquidity risk. Market risk concerns losses from changing market prices, while operational risk involves failures in processes, systems, or people.

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