17-73 Which of the following is a measure of the potential losses an FI could suffer as the result of fire-sale disposal of assets?

Question

Quizplus · Accepted Answer

The liquidity index measures an FI's ability to meet cash outflows without having to sell assets at fire-sale prices. It is a measure of potential losses an FI could suffer as a result of fire-sale disposal of assets. The quick ratio and current ratio are measures of an FI's short-term liquidity, financing gap and financing requirement are measures of an FI's funding needs, and peer group ratio is a comparison of an FI's performance to that of its peers.

17-73 Which of the Following Is a Measure of the Potential