The liquidity ratio is
A) A tool frequently used by depository institutions to assess liquidity risk.
B) a measure of the difference between a bank's short- term investments and its short- term liabilities, all divided by the bank's assets.
C) the income gap divided by the bank's total assets.
D) All of the above are true.
Correct Answer:
Verified
Q40: A bank has interest sensitive liabilities equal
Q41: The risk that after a loan is
Q42: The risk that the borrower knows more
Q43: The risk that the worst borrowers pursue
Q44: Which of the following is false?
A) The
Q46: _ is the danger that a financial
Q47: To manage liquidity risk, banks can
A) attract
Q48: An event or occurrence that deviates beyond
Q49: Capacity is
A) the borrower's ability to repay
Q50: Character is
A) the borrower's ability to repay
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