ACI
3I0-012 · Question #446
3I0-012 Question #446: Real Exam Question with Answer & Explanation
The correct answer is C. to ensure that banks have enough high-quality liquid assets to survive a 30-day period of acute market stress. See the full explanation below for the reasoning.
Question
What is the purpose of the Liquidity Coverage Ratio?
Options
- Ato mitigate market replacement risk across markets
- Bto eliminate funding mismatches by establishing a minimum acceptable amount of stable funding
- Cto ensure that banks have enough high-quality liquid assets to survive a 30-day period of acute market stress
- Dto minimize duration risk on a bank's assets over a one-year horizon
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