In terms of liquidity risk measurement,the financing requirement is defined as
A)total deposits minus core deposits.
B)financing gap plus liquid assets.
C)rate sensitive assets minus rate sensitive liabilities.
D)total assets minus total liabilities.

Question

Quizplus · Accepted Answer

Financing requirement can be calculated by adding the financing gap (the difference between rate sensitive assets and rate sensitive liabilities) to the amount of liquid assets held by the institution.

In Terms of Liquidity Risk Measurement,the Financing Requirement Is Defined