Which of the following is NOT included as high-quality liquid assets when computing a liquidity coverage ratio?
A)Sovereign debt.
B)Bank capital.
C)Government guaranteed mortgage-backed securities.
D)Central bank reserves.
E)Cash.

Question

Quizplus · Accepted Answer

Bank capital is not a high-quality liquid asset as it represents the bank's own equity and is not readily convertible into cash without impacting the bank's operations. The other options (A, C, D, E) are all considered high-quality assets that can be easily converted into cash in times of stress.

Which of the Following Is NOT Included as High-Quality Liquid