A bank is in the business of risk taking. Some of the risks it takes are the following:
1. Risk of default; certain borrowers will be unable to service the debt owed to the bank
2. Market liquidity risk or liquidity risk in trading; the risk that the bank will be unable to turn an asset into cash without the loss of value
3. Funding liquidity risk; the risk that funders will stop providing liquidity
4. The risk that in borrowing short and lending long, the bank will have to drain out its liquidity to repay its depositors

A) (i) and (ii) only
B) (i) and (iv) only
C) (i) and (iii) only
D) (ii) and (iv) only
E) None of the above