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3I0-012 · Question #298

The primary issue for insuring prudent liquidity management in accord with the guidance provided by the Basel Committee (Basel II I Basel III) is:

The correct answer is B. The nature and amount of high quality liquid assets a bank holds. See the full explanation below for the reasoning.

Question

The primary issue for insuring prudent liquidity management in accord with the guidance provided by the Basel Committee (Basel II I Basel III) is:

Options

  • ATier 3 capital requirements held against liquidity risk.
  • BThe nature and amount of high quality liquid assets a bank holds.
  • CCentral bank internal management processes regarding open market operations.
  • DThe transparent disclosure of illiquid on-balance sheet liabilities.

How the community answered

(18 responses)
  • B
    83% (15)
  • C
    6% (1)
  • D
    11% (2)

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Full 3I0-012 Practice