17-77 In terms of liquidity risk measurement,the financing requirement is defined as

Question

Quizplus · Accepted Answer

The financing requirement is the amount of funding needed to satisfy the difference between the financing gap and the amount of liquid assets. The financing gap is the excess rate-sensitive liabilities over rate-sensitive assets. Therefore, Option B is the correct answer as it combines both these factors to calculate the financing requirement. The other options are incorrect as they do not take into account the rate sensitivity of assets and liabilities which is critical in measuring liquidity risk.

17-77 in Terms of Liquidity Risk Measurement,the Financing Requirement Is