Which of the following statements is true?
A) In the current situation, only small FIs have to hold 9 per cent of their liabilities in specified high-quality liquefiable assets.
B) Currently, FIs are required to have in place a regulator-approved liquidity management strategy.
C) Currently, FIs are not subject to the user-pays approach.
D) Currently, FIs are required to have in place a regulator-approved liquidity management strategy and only small FIs have to hold 9 per cent of their liabilities in specified high-quality liquefiable assets.

Question

Quizplus · Accepted Answer

Option D correctly states both requirements that are currently in place for FIs - the need for a regulator-approved liquidity management strategy and a specific liquidity requirement of 9% for small FIs. Option A is incorrect as the 9% requirement only applies to small FIs, and not all FIs. Option B and C are incorrect as both are not complete statements and do not capture all the requirements currently in place for FIs.

Which of the Following Statements Is True