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3I0-012 · Question #191

Which of the following statements about the Liquidity Coverage Ratio is correct?

The correct answer is A. The LCR is a measure to ensure that the reserve of high quality liquid assets is sufficient to cover. See the full explanation below for the reasoning.

Question

Which of the following statements about the Liquidity Coverage Ratio is correct?

Options

  • AThe LCR is a measure to ensure that the reserve of high quality liquid assets is sufficient to cover
  • Bthe ratio (cash outflow in a 30-day stress period divided by high quality liquid assets) has to be greater
  • CCovered bonds are class 1 assets.
  • DObligations issued by central banks or government agencies are class 2 assets.

How the community answered

(66 responses)
  • A
    76% (50)
  • B
    14% (9)
  • C
    8% (5)
  • D
    3% (2)

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