Authorised depository institutions' liquidity management strategy includes the following elements except:
A)an informal contingency plan to deal with a liquidity crisis
B)defined managerial responsibilities and controls
C)a liquidity management policy statement approved by the FI's board
D)a system for measuring, assessing and reporting liquidity

Question

Quizplus · Accepted Answer

All of the other options listed are important elements of an authorised depository institution's liquidity management strategy. However, an informal contingency plan would not be sufficient in the event of a liquidity crisis. A formal and well-defined contingency plan should be in place to ensure that the institution can respond quickly and effectively in a crisis.

Authorised Depository Institutions' Liquidity Management Strategy Includes the Following Elements