APS210 specifies that 'high-quality liquid assets' must be free from encumbrances and include:
A)cash
B)long-term loans
C)cash and eligible securities approved by APRA
D)cash and long-term loans

Question

Quizplus · Accepted Answer

According to APS210, high-quality liquid assets must be free from encumbrances and must consist of cash and eligible securities approved by APRA. Therefore, choice C is the best answer as it includes both cash and eligible securities. Choices A and D are incorrect as they do not include eligible securities and choice B is incorrect as it includes long-term loans, which are not considered high-quality liquid assets.

APS210 Specifies That 'High-Quality Liquid Assets' Must Be Free from Encumbrances