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3I0-012 · Question #250

The Liquidity Coverage Ratio imposed by Basel III requires a bank:

The correct answer is B. to keep enough highly liquid assets to cover its net liabilities for the next 30 days to guard against severe. See the full explanation below for the reasoning.

Question

The Liquidity Coverage Ratio imposed by Basel III requires a bank:

Options

  • Ato keep enough highly liquid assets to cover its net liabilities for the next 10 days to guard against severe
  • Bto keep enough highly liquid assets to cover its net liabilities for the next 30 days to guard against severe
  • Cto keep enough highly liquid assets to cover its net liabilities for the next 60 days to guard against severe
  • Dto retain enough liquidity to cover its assets against severe default risk

How the community answered

(51 responses)
  • A
    4% (2)
  • B
    75% (38)
  • C
    14% (7)
  • D
    8% (4)

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