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Regarding funding liquidity and market liquidity, which of the following statements
is correct?
AThe use of a purchased asset as collateral to borrow money against is referred to as market liquidity.
BA decline in a source of funding has the same effect as a decrease in margin.
CA loss spiral is a negative function of market liquidity.
DIn a margin spiral, a trader initiates a sale to maintain the leverage ratio (i.e., constant margins).
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