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