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Given the Following Information, Which Statement(s) Is Correct About the Olympic

Question 15

Multiple Choice

Given the following information, which statement(s) is correct about the Olympic Bank's liquidity risk compared to its peer banks:
 Olympic Bank  PEER Bank Average  Net Loans to Assets 65%55% % Short-term Securities 15%20% Volatile Liabilities to Assets 15%5% Core Deposits to Assets 60%80% Unused Loan Commitments 67%30%\begin{array}{lcc}&\text { Olympic Bank }& \text { PEER Bank Average }\\\text { Net Loans to Assets } & 65 \% & 55 \% \\\text { \% Short-term Securities } & 15 \% & 20 \% \\\text { Volatile Liabilities to Assets } & 15 \% & 5 \% \\\text { Core Deposits to Assets } & 60 \% & 80 \% \\\text { Unused Loan Commitments } & 67 \% & 30 \%\end{array}


A) Olympic Bank has more liquidity risk on the asset side than its peers.
B) Olympic Bank has more liquidity risk on the liability side than its peers.
C) Olympic Bank has more liquidity risk on the off-balance side than its peers.
D) All of the above.

Correct Answer:

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