The positive difference between an FI's contingent liabilities and contingent assets represents:

Question

Quizplus · Accepted Answer

The positive difference between an FI's contingent liabilities and contingent assets represents an additional obligation, or claim, on the FI's net worth. This means that the FI may have to pay out more than it expected, which could decrease its net worth and potentially lead to financial difficulties. It is important for FIs to manage their contingent liabilities and assets carefully in order to maintain a healthy financial position.

The Positive Difference Between an FI's Contingent Liabilities and Contingent