The Burr Bank has just calculated the ratio of its U.S.Government Securities to Total Assets.Which liquidity indicator is this?
A)Cash position indicator
B)Liquid securities indicator
C)Net federal funds and repurchase agreement position
D)Capacity ratio
E)Hot money ratio

Question

Quizplus · Accepted Answer

The ratio of U.S. Government Securities to Total Assets is a liquidity indicator known as the Liquid Securities Indicator. This ratio measures the ability of the bank to raise cash quickly by selling highly liquid securities like U.S. Treasury securities.

The Burr Bank Has Just Calculated the Ratio of Its